THE ADMINISTRATORS of Quinn Insurance have told staff that it is vital “no barrier is put in place” that could jeopardise the sale of the business which is entering a “critical juncture”.

In a letter circulated to staff yesterday, the administrators said they would not be attending a meeting organised by Cavan Chamber of Commerce this evening but that they were urging all stakeholders to support the administrators and management of Quinn Insurance as the sale enters its final stages.

“The manner in which we proceed over the next few weeks will determine whether a sale is achieved or not. It is vital, at this crucial stage of the process, that nothing is done to derail the work that we have done up to now and that no barrier is put in place that would deter the bidders we are working with.”

The High Court heard yesterday that the Quinn administrators hoped to identify a preferred bidder by the end of this month.

In a report from the joint administrators, Mr Justice Nicholas Kearns was also told new directors have been appointed to the board of Quinn and the insurer’s performance in the British market was better than expected.

Quinn was no longer providing insurance cover for solicitors, the report further stated.

At the scheduled presentation before the High Court – the fifth such appearance – Bernard Dunleavy, for the administrators, said that while it was very much a case of “business as usual” at Quinn, “a new culture” had been brought into the group.

This process, involving regular meetings between senior and middle management, had made the firm more open and transparent, he said.

Yesterday’s communication between the administrators and staff of Quinn Insurance, was the third such correspondence this week.

Earlier in the week the administrators informed staff that there was “no Quinn/Anglo proposal” and “no Quinn family proposal” for the insurer.

The Quinn family have argued that a joint bid with Anglo would be the best outcome for employees and would allow Seán Quinn to repay his €2.8 billion debt to Anglo.

Representatives of the Quinn family and of the local business community are believed to be strongly lobbying politicians about endorsing the Quinn family proposal for taking over Quinn Insurance, which is not supported by Anglo.

In their letter to staff yesterday, the administrators said that while some of their key objectives in selling the business were to ensure all lines of business remained open across all regions, that the new owner would potentially develop existing and new lines of business, and that the maximum number of jobs would be preserved, they “cannot guarantee” that these objectives would be achieved.

Mr Dunleavy told the High Court that “significant progress” had been made and an “end was in sight” in relation to finding a buyer for Quinn Insurance.

Mr Dunleavy said his clients were happy with the way that the administration process was progressing. They had managed to stabilise the business to a position where it would be an attractive proposal for purchase.

The insurer has more than 573,000 active policies and more than 26,000 open claims, the court heard.

The complete reconfiguration of the board had also been finalised and the administrator was continuing to liaise with the Central Bank and the Financial Regulator, counsel said.

All executive and non-executive directors had been replaced.

Peter Nolan and John Dorris – two experts in the financial services sector – were appointed as non- executive directors last November.

Mr Dunleavy said the administrator envisaged the 2,454 staff of the insurer would be reduced to 1,628 through voluntary redundancy and natural wastage.