Court approves new Quinn payments

Tue, Jul 31, 2012, 01:00

The High Court has approved the payment of monthly living expenses totalling almost €30,000 to the five adult children of bankrupt businessman Sean Quinn and three spouses.

The court extended an injunction, on an application by the former Anglo Irish Bank, over Karen Woods, the wife of Mr Quinn's son Seán Quinn jnr, preventing her from disposing of any assets in Ireland or abroad below the value of €50 million.

Mr Justice Peter Kelly also directed her to disclose all assets and bank accounts in her name on or before August 13th. She must also disclose any actions taken by her to put assets beyond the reach of the bank, which is now known as Irish Bank Resolution Corporation.

Receivers Declan Taite and Sharon Barrett of the accountancy firm RSM FGS were also appointed over the assets of Ms Woods.

The bank has taken legal proceedings against various members of the family of former billionaire Seán Quinn over moves by the family to put assets beyond the reach of the bank, which is owed €455 million on loans advanced for the family's international properties in Russia, Ukraine, Turkey and India.

IBRC is owed a further €2.3 billion which Mr Quinn's wife and children are challenging in separate legal proceedings taken against the bank. Mr Quinn has been declared bankrupt on the back of debts of more than €2.16 billion owing to the bank.

The court approved monthly living expenses of €2,995 to Brenda Quinn, €8,184 to Ciara Quinn and her husband Niall McPartland, €3,743 to Colette Quinn, €7,775 to Aoife Quinn and her husband Stephen Kelly for August - and €5,375 a month thereafter - €5,273 to Sean Quinn jnr and €2,895 to his wife, Ms Woods.

The expenses approved to Ms Woods include mortgage repayments on two rental properties, in Clonsilla and Kimmage in Dublin.

Mr Quinn jnr's expenses include the payment of £800 sterling in rent on a property in Belfast and ongoing utility expenses while he serves a three-month jail term in Mountjoy Prison for contempt of court.

Colette Quinn was approved expenses of €250 a month for the cost of a new baby and €400 for medical expenses. Brenda Quinn's expenses included the cost of groceries in Tesco and Spar, petrol and caring for dogs. Aoife Quinn's expenses included the cost of travelling from York to meet her solicitors.

Receivers have been appointed over the assets of the Quinn children and injunctions preventing them from disposing of assets have been continued until the trial of the bank's proceedings against the family members over assets being put beyond the reach of IBRC.

The judge was told that $32 million in rent from a Russian office block, the Kutuzoff Tower in Moscow, that was still unaccounted for and unexplained. The court was previously told that €2.8 million had been paid to members of the Quinn family from the company that owns the property.

Lawyers for IBRC said that this was still "a very significant concern for the bank".

Mr Justice Kelly last week granted an application by the bank for appointment of Declan Taite as receiver over the worldwide assets of various Quinn family members and over various foreign companies allegedly involved in the asset stripping scheme and based in Belize, Panama, Russia and United Arab Emirates.

The Commercial Court judge also granted IBRC interlocutory orders (orders continuing pending the outcome of full legal proceedings) against various Quinn family members below €50 million.

The effect of the orders is to freeze the defendants' accounts and appoint receivers over their assets, except for family homes, certain joint accounts and certain future earnings of some members of the family unrelated to their international property group.

Freezing orders have been granted against the five Quinn children – Aoife, Ciara, Colette, Brenda and Seán jnr, their cousin Peter Darragh Quinn and two sons-in-law of Seán Quinn - Stephen Kelly and Niall McPartland.

A receiver has already been appointed over the assets of Seán Quinn jnr and Peter Darragh Quinn.