The joint administrators of Quinn Insurance Ltd (QIL) have conducted a forensic investigation into certain matters for legal proceedings initiated against the firm’s former auditors, PricewaterhouseCoopers, the High Court heard yesterday.
The president of the High Court, Mr Justice Nicholas Kearns, was told lawyers and experts engaged on QIL’s behalf have been conducting an investigation for a High Court action against PwC.
Those proceedings arise from alleged failure by PwC to highlight that certain guarantees by QIL, the company established by Seán Quinn, were threatening the firm’s future.
The judge yesterday approved the latest payment of €250 million out of the taxpayer-funded Insurance Compensation Fund (ICF) to QIL, whose Irish business, except healthcare, was sold in a deal involving US insurance giant Liberty earlier this year.
The €250 million, to be drawn down on January 2nd, brings to €1,058 million the total drawdowns from the ICF since October 2011. The administrators told the court last July they considered a total €1.65 billion drawdown would be a “worst-case scenario” and the €250 million was in line with projections previously given to the court, it was stated.
The court also yesterday approved the reappointment of Deloitte, which has agreed to a 35 per cent cut in their fees, as the auditors of QIL.
