The beleaguered Quinn Group has engaged the services of a financial restructuring firm in an apparent bid to avoid having its insurance business put into administration.
The group is fighting legal action taken by the Financial Regulator over concerns Quinn Insurance had fallen below the regulatory solvency levels.
The legal hearing to put Quinn Insurance into full administration was yesterday postponed for a week after the company filed a lengthy affidavit.
In a brief statement this evening, the group said it had employed financial consultancy firm Talbot Hughes McKillop to examine its businesses.
THM partner Murdoch McKillop has also been appointed as an interim executive director of the group, the statement said.
The group’s chief executive Liam McCaffrey said: “Mr McKillop’s role will be to assist the board and the executive management team to successfully work through the group’s current issues and to ensure that executive management are not excessively diverted from the vitally important job of running our Manufacturing business.”
The Financial Regulator Matthew Elderfield launched an investigation into Quinn insurance last month, claiming the company had “significantly breached” its solvency ratios and its subsidiaries had entered into a series of guarantee agreements that had reduced its assets by some €448 million.
The High Court last month approved the appointment two provisional administrators to Quinn Insurance Ltd, Dublin Road, Cavan on the back legal action taken by Mr Elderfield.
Taoiseach Brian Cowen acknowledged earlier this month the crisis had led to a very complex situation for the Government in its efforts to save 5,500 jobs at the group while not compromising the independence of the regulator.
State-owned Anglo Irish Bank is attempting to strike a deal with the regulator to secure the takeover of Quinn insurance firm in order the secure the repayment of €2.8 billion owed to it by the Quinn family.
