High Court confirms Quinn Insurance administration

The High Court has confirmed the appointment of joint administrators to the Quinn Insurance Group following the company's withdrawal of its objections to the Financial Regulator's bid to have administrators take over the running of the insurer. John Hennessy SC, for Regulator Matthew Elderfield, told the President of the High Court, Mr Justice Nicholas Kearns, last Thursday that the company was "no longer opposing" the petition to have Paul McCann and Michael McAteer of Grant Thornton appointed as administrators of Quinn Insurance, which employs some 5,000 people. The court heard that the role of the administrators is to carry on the company's affairs as a going concern and to conduct business with a view to putting it on a sound commercial footing. The court had last month approved the appointment of Mr. McCann and Mr. McAteer as joint provisional administrators to Quinn Insurance Ltd, Dublin Road, Cavan. The regulator said the application arose given his "very serious concerns" about the financial position of the Sean Quinn-founded company which operates in both Ireland and the UK. Yesterday counsel said that it had been agreed by both parties that orders confirming the appointment of Mr. McCann and Mr. McAteer as administrators could be made by the court. Counsel said that when the matter had been adjourned earlier this week to next Monday for hearing. That adjournment was to allow for the exchange of affidavits, however the situation had now changed and the company was now accepting the appointment of the joint administrators who will now take over the running of the insurer. Michael Cush, SC for Quinn, said that his clients were consenting to the administrators appointment. Counsel asked the court that the company be put on notice of any application brought by the administrators relating to the company before the High Court. Mr. Justice Kearns said that while he was neither accepting all the assertions made by the Regulator nor rejecting any claims made by the company, he was satisfied on the basis of the information before him that he could confirm the appointment of administrators. Mr. Hennessey agreed with Mr Justice Kearns that the Regulator was "very conscious" of concerns held by company's employees as a result of the appointment of the administrators. The judge, following a request by Bernard Dunleavy Bl for the administrators, agreed to put the matter back to May 20, when a report by the administrators would be put before the court. Counsel said that his clients would run the company under the specific powers granted to them by relevant provisions of the Insurance Act and the Companies Act. Counsel said that if they believed it necessary to take certain steps, including placing the company into receivership, they would first have to make an application before the High Court.