án Quinn wants the High Court to either lift orders freezing their bank accounts below €50 million or direct Irish Bank Resolution Corporation to ensure $500 million is available to cover any damages awarded to them should they defeat its case against them.
An undertaking by IBRC special liquidator Kieran Wallace to provide €5 million to meet damages is "worthless" given the bank's insolvency and the fact the Minister for Finance can withdraw support from the bank at any time, the Quinns claim.
Daughter Aoife Quinn argued that the account freezing orders made against the five Quinn children and other family members have made it "extremely difficult" for them to carry on with their lives.
The orders had led to KBC Bank appointing a receiver to her brother Seán’s home, involving a loss to him of €700,000 as it was now to be sold leaving a large undischarged loan payable to KBC, she said.
She said assets in the Quinn’s international property group (IPG) had been valued at $700 million and the Quinns disputed the bank had any valid security over those. In that regard, Mr Wallace’s offer to “ring-fence” €5 million to meet any losses suffered by the Quinns was “wholly inadequate”.
While Mr Wallace argued the IPG assets were now “distressed”, she said that was due to the bank’s own actions. She feared, given IBRC’s liquidation, there would be a “fire sale” of IPG assets at significant undervalue when those were intended as long-term Quinn family investments.
Freezing orders
The freezing orders were granted last June and July prior to the full hearing of IBRC's action alleging a conspiracy by the Quinn defendants and various companies to place IPG assets beyond the bank's reach.
Today, Martin Hayden SC, for the Quinns, applied to Mr Justice Michael Peart for the orders to be lifted or, given the admitted insolvency of IBRC, an order requiring it provide a fortified undertaking for $500 million to meet any damages claim.
IBRC is opposing the application and contends there is no credible dispute on the facts of the case concerning stripping of assets. It claims the freezing orders are necessary to give IBRC any chance of recovering assets and to prevent the family moving assets beyond its reach.
In affidavits, Mr Wallace said IBRC only has complete control of one IPG asset, in Kiev, and litigation was continuing in relation to the others. He also disputed the Quinns’ claims the freezing orders had inflicted loss on them, and said the orders had been varied to allow for various payments, including for mortgages. The $500 million lodgment sought by the Quinns bore no reference to any loss attributable to the court injunctions, he said.
Mr Hayden argued the IBRC liquidation stymied and sterilised the family's separate action alleging Anglo Irish Bank (now IBRC) advanced €2.34 billion illegal loans to Quinn companies to prop up its plummeting share price.
There is “a contrived inability” to pay any damages which may be awarded to the Quinns as IBRC is insolvent as a result of the decision of the Minister for Finance, he said.
Since 2011, when IBRC had given an undertaking to meet any damages, it had deliberately made itself asset free and, in those circumstances, the orders should not be continued.
The hearing continues.
