Quinn ordered to repay €417m

Bankrupt businessman Sean Quinn has been ordered by the Commercial Court to repay about €417 million to the Irish Bank Resolution Corporation, representing the largest summary judgment amount ever entered in the courts here against an individual.

Mr Justice Peter Kelly has adjourned to Monday his decision whether to grant IBRC, formerly Anglo Irish Bank, further summary judgment orders totalling about €1.6 billion against Mr Quinn, once Ireland's richest man.

The bank had sought summary judgment for just over €2 billion against Mr Quinn, who filed for voluntary bankruptcy in Northern Ireland on November 11th last, nine days after the bank issued its summary judgment proceedings here.

Mr Justice Kelly ruled today the IBRC was entitled to €417 million orders in circumstances where Mr Quinn had admitted, in bankruptcy proceedings in Northern Ireland, that he was liable to the bank for that amount.

The bank had made out a strong case for summary judgment in the additional sum of €1.6 billion and Mr Quinn appeared to have no defence to that given the tightly drawn guarantees under which the bank sought judgment, the judge said.

While he was very inclined to enter judgment for that €1.6 billion, he said he would adjourn the remainder of the application to Monday to allow the Official Receiver in bankruptcy in Northern Ireland consider whether he wishes to seek a stay on entry of summary judgment in the €1.6 billion.

The IBRC is seeking to annul the bankruptcy on grounds it was allegedly contrived by Mr Quinn on frustrate the bank's attempts to recover against him. It disputes his claim his centre of main interests is in Northern Ireland.

The official receiver had last Monday sought an adjournment of the bank's summary judgment application but the bank strongly resisted that.

Mr Justice Kelly reserved judgment on the adjournment application and today said he was satisfied entry of summary judgment would not affect the bankruptcy proceedings in Northern Ireland or impermissibly cut across the jurisdiction of the NI High Court when it deals with the bank's application tomorrow to annul the bankruptcy.

The judge said it appeared the hearing to annul the bankruptcy would not take place until next year and noted any decision in that could be appealed.

He was satisfied the official receiver would not be prejudiced by the entry of summary judgment but the bank could be prejudiced were summary judgment refused.

In its summary judgment proceedings, the bank is seeking repayment of some €2 billion arising mainly from the businessman's guarantees of loans to companies in the Quinn group.

The bank is also claiming €3 million summary judgment orders against Mr Quinn and his wife Patricia arising from personal borrowings. The proceedings against Mrs Quinn have been adjourned to next month.