Quinn family to be frozen out of Quinn Group

Seán Quinn and the Quinn family are being frozen out of the management of the Quinn Group following the announcement today (Thursday) of Liberty Mutual/Anglo Irish Bank as the preferred bidder for the sale of Quinn Insurance. The bank has announced the appointment of Kieran Wallace of KMPG as share receiver to take control of the Quinn family's stake in the parent company of the Quinn Group. Under the powers granted to him as Share Receiver, he will oversee the appointment of a new board of directors to Quinn Group (ROI) Limited. Mr Wallace has been appointed to take control of the shares only - not of the assets, business, employees, operations or undertakings of the group of companies. His appointment will have no impact on employment, on trade creditors or on the day to day operations of the group of companies. Anglo Irish Bank is owed €2.88bn by Seán Quinn and his family, while other lenders to the Quinn Group are owed almost €1.3bn. A five-year restructuring plan has been agreed between Anglo and the Quinn Group's lenders, aimed at stabilising the businesses, which are described as 'fundamentally good and profitable'. Anglo Irish Bank chief executive Mike Aynsley said the bank was owed an enormous amount of money by the Quinns, which they were not in a position to repay. He said the bank had taken an approach which protected the businesses and paved the way for maximising the repayment of debt to the taxpayer over time. Quinn Group chairman Pat O'Neill said the financial restructuring was essential for the survival of the business, and more than 2,600 jobs would be protected. In a separate announcement, Quinn Insurance said Liberty Mutual and Anglo Irish Bank was the preferred bidder for the company. It is proposed that Liberty Mutual will provide the management and insurance expertise to Quinn Insurance. Anglo Irish Bank will retain a minority shareholding in the new firm but will have no dealings in the day-to-day management of the new company. It is hoped a deal will be finalised within the next four to six weeks. The High Court heard that all 1,570 jobs in the Republic and in Northern Ireland will transfer to the joint venture. Cavan will remain the head office of the business. As part of the plan, the Navan office is to close and the 100 staff will relocate to either Blanchardstown or Cavan. Thirty staff based in the Manchester office, which is to close, are to be offered redundancy. A petition signed by 90,581 people was presented to Minister Noonan today, asking that any plan for Quinn Insurance's future be fully examined before a decision is made. For reaction from the Quinn Insurance staff and members of the Quinn family to the latest developments and analysis on what this means for the Quinn Group in Cavan, see next week's issue of The Anglo-Celt.