Quinn family considers next move

Businessman Seán Quinn and his family were last night said to be considering taking legal action in a bid to retain control of their multi-million euro business empire after Anglo Irish Bank moved yesterday to secure control of these assets.

It is understood that the Quinn family is consulting with their law firm Eversheds in Dublin to review their options.

In a short statement, the Quinns said they were “considering” their position following Anglo’s surprise move in what was a dramatic day for the family and their various businesses.

An alternative restructuring plan proposed by the Quinns was rejected by the State-owned bank.

Mr Quinn yesterday lost control of a company he set up in 1973 on his family farm in Derrylin, Co Fermanagh.

Anglo appointed Kieran Wallace of KPMG as receiver of the shares to the main Quinn operating entities and the company that controls its property assets.

These assets were pledged to Anglo as collateral by Mr Quinn and his family for €2.88 billion in loans.

These debts were largely related to Mr Quinn’s disastrous speculative investment in Anglo before the financial crash in 2008.

The only significant assets outside the direct reach of Anglo are the high-profile Belfry golf resort in England and a windfarm in Co Cavan.

As part of a five-year investment plan, lenders and bondholders to Quinn’s manufacturing operations have agreed to relieve it of €500 million worth of debt from a total of €1.28 billion.

The 60 lenders and bondholders will receive a one-quarter share in the business, €80 million in cash and an additional €125 million from the sale of certain property assets, including the Quinn’s hotels in Krakow, Sofia and Cambridge.

Quinn Group said all 1,000 employees at its manufacturing facilities along the border would be retained.

But major changes were made to the board of Quinn Group with Liam McCaffrey, a long-time associate of Mr Quinn, replaced as chief executive by Irishman Paul O’Brien, who has been a non-executive director of the company since last November.

This deal, one of the biggest and most complex in Irish corporate history, was hatched after months of negotiations.

It is understood that Anglo told Mr Quinn of its intentions at a meeting in the bank’s head office in Dublin yesterday morning.

The meeting, which lasted about 30 minutes, was attended by Anglo’s chairman Alan Dukes, chief executive Mike Aynsley, and senior executive Richard Woodhouse, who is leading the restructuring for the bank.

Anglo declined to comment on the details of the meeting, which took place at 9.30am, or Mr Quinn’s reaction.

Mr Quinn was accompanied by two of key senior executives, Kevin Lunney and Dara O’Reilly.

Commenting on the restructuring, Mr Aynsley said: “It is a deal that stabilises the businesses and puts them on a firm, long-term financial footing.

“We now have a financial package underpinned by the lenders and the bondholder that gives us time to trade actively and grow value in the businesses.”

Anglo’s move on Mr Quinn’s industrial, property and financial services group was announced almost in parallel with the bank and US group Liberty Mutual being declared as the preferred bidder for Quinn Insurance Ltd (QIL).

QIL was for a long time a cash cow for Mr Quinn’s wider business interests. This sale followed a 13-month administration process run by Grant Thornton. The administrator said all 1,570 jobs in Ireland would be retained but the office in Manchester will close with 30 staff being made redundant.

An office in Navan will also close but staff will be offered redeployment in Blanchardstown.

The sale will require the approval of the High Court, the Central Bank, the Competition Authority and possibly the European Commission. This process could take 12 to 14 weeks to complete.

The employee representative committee in Quinn Insurance yesterday welcomed news of its sale.

“The past year of uncertainty has been a difficult time for all concerned and we are delighted that we have now reached the goal of securing the jobs within the company,” the committee said.

Minister for Finance Michael Noonan welcomed the restructuring of Quinn Group.

“This structure will enable the good and strong businesses to continue to trade and grow. It is particularly important that there will be no impact on employment, on trade creditors or on day to day operations of the Quinn Group,” said Mr Noonan.