Bankrupt businessman Sean Quinn, once believed to be Ireland's richest man, has been ordered to repay a total of more than €2 billion to the Irish Bank Resolution Corporation (formerly Anglo Irish Bank), the largest summary judgment amount ever entered in the courts.
IBRC CEO Mike Aynsley was in the Commercial Court this week when Mr Justice Peter Kelly, who last week made €417m summary judgments orders against Mr Quinn, granted the bank's application for additional summary judgment orders totalling about €1.7bn against the businessman. The orders arose mainly from guarantees executed by Mr Quinn over loans to various Quinn companies to acquire property here and overseas including India and Russia.
Mr Quinn voluntarily filed for bankruptcy in Northern Ireland on November 11 last, nine days after the bank issued its summary judgment proceedings and two days before they were due before the Commercial Court. IBRC has since brought proceedings in the North seeking to annul his adjudication as a bankrupt.
Mr Quinn did not attend court for the hearing, which lasted about half an hour.
Paul Gallagher SC, for the bank, said the Official Receiver had indicated by email earlier he was making no further application in the matter and had also informed Mr Quinn's solicitors, if their client wished to defend the bank's proceedings, he would have to provide the receiver with an indemnity to ensure the receiver would have no liability for costs incurred in any such defence.
Solicitors for Mr Quinn had informed the Receiver that he was not participating in the summary judgment application.
Counsel said the bank's criticism of his client was regrettable and the bank had not been disadvantaged "one whit" by his client's stance.
Mr Gallagher then applied for summary judgment in various sums sought in three different sets of proceedings against Mr Quinn.
Giving judgment, Mr Justice Kelly noted he had last week ruled the IBRC was entitled to about €417m summary judgment orders as Mr Quinn had admitted in his bankruptcy proceedings in Northern Ireland he was liable to the bank for sums of US$219.9m and €253.9m (totalling about €417m).
The judge said he had read the vast documents in the case related to the various loans and guarantees and these displayed no evidence of any defence to the bank's claims. He also noted no opposition was being advanced.
In the circumstances, he was satisfied the bank was entitled to judgment in the additional "very large" sums sought and made orders entering summary judgment in sums totalling a further €1.7 billion against Mr Quinn.
That included judgment for €3.055m against Mr Quinn arising from €3m personal borrowings of Mr Quinn and his wife Patricia. The claim against Mrs Quinn was adjourned to next month.
Mr Justice Kelly previously ruled the summary judgment proceedings did not interfere with the Northern Ireland courts in adjudicating upon all matters pertaining to Mr Quinn's bankruptcy.
If the bankruptcy stood, IBRC would have to follow the prescribed procedures for proving its debt in accordance with the law and practice of Northern Ireland and the bank accepted that, the judge noted.
If the bankruptcy was annulled, a judgment secured by the bank could be used to execute against the assets of Mr Quinn, he said. A judgment could also be used as a basis for a bankruptcy summons here although it was not an essential prerequisite for that.
The bank has applied to annul the bankruptcy on grounds including that, contrary to Mr Quinn's claim his centre of main interests was in Northern Ireland, that centre was in the Republic.
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|Date:||Sunday, May 19, 2013 at 3:51:47 AM|