Quinn family fails in bid to lift injunctions on bank accounts

The High Court has refused applications by bankrupt businessman Sean Quinn and eight of his family members to discharge injunctions restraining all or any of them from dealing with assets of a number of Quinn companies.

Mr Justice Michael Peart said today that the balance of justice favoured leaving all of the injunctions in place. The injunctions freeze family and company bank accounts.

The judge ordered the plaintiffs in what is known as “the conspiracy proceedings,” including the IBRC which is in liquidation, to lodge €5 million in court to fortify undertakings they had given to the court as to damages.

The plaintiffs are Irish Bank Resolution Corporation Ltd in liquidation; Quinn Investments, Sweden, and Leif Baecklund.

The applications to quash the injunctions had been made by Sean, Ciara, Colette, Brenda and Aoife Quinn and Sean Quinn junior as well as Niall McPartland and a number of internationally-based Quinn companies.

Judge Peart said that when the injunctions were applied for by the IBRC the Corporation had given the usual undertaking as to damages to the court.

However, on February 13th of this year the Irish Bank Resolution Corporation Act had become law and under that legislation the Minister for Finance had made a Special Liquidation Order in respect of IBRC.

He said the Quinn family and associated companies had sought to have the injunctions discharged on the basis that the undertakings as to damages were worthless once IBRC became insolvent, unable to pay its debts and in liquidation.

The €5 million “fortification of the undertakings” is to be paid into court by the plaintiffs before the end of August. Costs of the proceedings will be dealt with at the end of October.

Peter Darragh Quinn was not a part to the applications before the court.