Bank takes action over Quinn loans

The Irish Bank Resolution Corporation, formerly Anglo Irish Bank, has initiated court actions against businessman Sean Quinn seeking summary judgment orders for just over €2 billion against him arising mainly from his personal guarantees of a large number of loans.

Many of the loans related to property, including property in Russia, Ukraine, India and Turkey.

The bank initiated the three cases last week and it's applications to have them fast-tracked to the Commercial Court are listed before Mr Justice Peter Kelly in that court on Monday.

It is unclear how the proceedings will be affected by Mr Quinn's decision today to file for bankruptcy in Northern Ireland.

Two of the actions are against Mr Quinn alone while the third is against Mr Quinn and his wife Patricia, described as a company director and business lady. That case relates to a €3m claim.

The largest action involves claims for summary judgment against Mr Quinn in the amounts of €1.05 billion; US$808 million and Yen 13.8 billion.

That claim is brought under a guarantee of November 2007 entered into by Mr Quinn in relation to the liabilities of Quinn Finance. The bank claims Quinn Finance has defaulted on repayment and Mr Quinn has also failed to make payment under his guarantee.

In court documents, the bank has also said, due to the scale of the borrowings involved and the large number of jobs dependent on the Quinn group businesses, it had negotiated with Mr Quinn for some period rather than immediately call in the loan facilities and, particularly, the guarantee.

It was only when negotiations broke down it had called in the loans, the bank says. It has also referred to legal actions brought against it by Mr Quinn's family in which they have claimed loans are not enforceable and says it denies those claims.

A second action involves a claim by the bank for judgment against Mr Quinn in the sum of about €372 million, plus interest, over guarantees and liabilities entered into by Mr Quinn from 2007 concerning loans to several companies, including Slieve Russell Hotel Property Ltd and Quinn Group Properties Ltd.

One of those loans, for €65m, was made available on December 15th 2008 and was repayable by December 31st 2008.

The bank claims the companies have defaulted on repayment obligations and Mr Quinn has also failed to make payment under the guarantees.

The third action by the bank is against Sean and Patricia Quinn and involves a claim for summary judgment for €3m, plus interest, over a loan facility of November 2006.