Constraints on disposal of Quinn's Ukrainian property 'made fun of'

PROHIBITIONS ON the disposal of eastern European property linked to bankrupt ex-billionaire Seán Quinn were “made fun of”, Northern Ireland’s High Court heard yesterday.

Representatives of a mysterious offshore company allegedly ignored the injunction to secure a claim for $45 million against a Ukrainian shopping centre, a judge was told.

It was also confirmed that a handwriting expert is to be brought in to examine separate claims that the signature of the former tycoon’s nephew was forged in a debt assignment related to the case.

The former Anglo Irish Bank is locked in a legal battle for control of Mr Quinn’s international empire as part of its attempt to recoup more than €2 billion.

Amid allegations of assets being stripped to prevent it securing the money it claims to be owed, a three-day hearing is due to begin in Belfast next month.

But ahead of that date contempt of court proceedings have been initiated against two Ukrainian legal representatives of the British Virgin Islands-registered Lyndhurst Development Trading for allegedly flouting a ban on enforcing any loan agreements.

Lyndhurst was prohibited from dealing with debts surrounding the shopping centre through an emergency injunction granted in Belfast in the early hours of December 23rd.

But it is alleged that later the same day the order was ignored by at least one representative of the company during a hearing in Kiev. In a blow to the bank’s attempts to seize the property, Lyndhurst secured judgment from the Ukrainian court that it was entitled to enforce a $45 million debt against the firm which owns the mall, Univermag.

Senior counsel for Anglo, now renamed the Irish Bank Resolution Corporation, claimed yesterday that the judicial order made in Belfast was treated with “complete contempt” by one of those who acted on behalf of Lyndhurst in Kiev.

Mark Horner QC said: “He ignored it, he made fun of it and, in our submission, the case could not be more clear.

“They knew there was an order in Northern Ireland not to go ahead and despite that order they made, in inverted commas, humorous comments.”

The barrister alleged that “inaccurate and untruthful evidence” was then given in correspondence on the issue.

One of those facing contempt proceedings should be barred from the main case over control of the eastern European property unless he “purges” his wrongdoing, Mr Horner contended. He said that should either be done in person at a hearing later this month, or by video-link if he cannot travel to Northern Ireland.

“It is absolutely essential that be resolved as soon as possible,” he added.

Lyndhurst is one of four companies covered by the injunctions obtained on behalf of IBRC as controllers of Quinn Finance and Quinn Hotels Praha AS.

The others are Galfis Overseas, in Belize, and two Northern Ireland-based firms, Demesne Investments and Innishmore Consultancy.

Innishmore’s director is Peter Quinn, Seán Quinn’s nephew.

An allegation that Peter Quinn’s signature was forged on a document to transfer on a debt is to form part of the main case.