Quinn Insurance in Administration

[supersarsfields]

Well I was right enough. So far no mention of the court case just the reported losses from Anglo. I see these come from the alreadly reported losses from QIL and write down of assets. I'll take them with a ounce or two of salt especially considering that  QG managed to keep gross profit margins in the manufactoring area to 27 % at a time when alot of others were falling on their face. But no doubt they'll make sure that everyone focuses on the alledged losses!!

<sup>Quinn Group to post loss of €880m
In this section »

SIMON CARSWELL, Finance Correspondent

QUINN GROUP, the business founded by Seán Quinn, will report an operating loss of about €880 million when the conglomerate's long-awaited financial results for 2009 – its last year fully under the control of Mr Quinn – are published today.

The group wrote down assets by about €274 million and absorbed a loss of €644 million at its Quinn Insurance subsidiary. The value of properties in the group and some of its industrial plants, including the plastics factory in Mainz, Germany, were written down substantially.

The group – which is involved in cement, building materials and glass-manufacturing – had net liabilities of €192 million at the end of 2009 after taking provisions for related party loans of €951 million.

In a separate development Mr Quinn's family will apply to have their legal action against State-owned Anglo Irish Bank entered into the fast-tracked Commercial Court list at a hearing on Monday.

Anglo, which intends to vigorously defend the action, is not expected to oppose the move.

Mr Quinn's wife and five adult children – the shareholders of the Quinn Group – are seeking hundreds of millions of euro in damages over Anglo's decision to take control of the group last month.

Anglo seized ownership of the group appointing receiver Kieran Wallace of KPMG over the family's shares in Quinn Group (ROI), the firm at the top of the group.

The bank has installed its own directors and management to lead the business, freezing Mr Quinn out of the running of the group.

The figures to be published today will show that the group's manufacturing turnover fell 28 per cent in 2009, reflecting the collapse in the construction sector. Heavy cost-cutting kept gross profit margins at 27 per cent.

Overall turnover at the group including Quinn Insurance, fell to €1.6 billion in 2009 from €2.3 billion a year earlier when the group made a profit of €83 million.

The turnover within the manufacturing business – which will form the core part of the group following the sale of Quinn Insurance – was €654 million in 2009 and €658 million last year, according to draft accounts for 2010. Turnover within this business remained broadly in line last year with the 2009 performance.

The group's overall turnover fell to €939 million in 2010 as only the first quarter turnover of €281 million at Quinn Insurance was included in the 2010 figures.

Joint administrators were appointed to the insurer on March 31st, 2010, amid the Central Bank's concerns about its solvency. Losses at the insurer will lead to a call of €600 million on the State's Insurance Compensation Fund to be recouped by a levy on all non-life insurance policies.

The filing of the group's 2009 results was delayed for more than a year due to the delay in the sign-off of Quinn Insurance's 2009 financial statements by auditors PricewaterhouseCoopers as a result of the administration.

The 2010 financial statements are expected to be finalised within the next three to four months.

The administrators agreed to sell Quinn Insurance to State-owned Anglo Irish Bank and US insurer Liberty Mutual last month.

Earnings before interest, tax and write-offs of depreciation costs and amortisation (Ebitda) – a measure of cash generated – totalled €104 million in the manufacturing business for 2009.

Under last month's restructuring, Anglo is taking 75 per cent ownership of the group, with the banks and bondholders taking the remaining 25 per cent.</sup>

[Kerry Mike]

They rang anyone who had booked their wedding there today and told them it was business as usual but that there was going to be this announcement tomorrow.  That's the Russel, Lough Erne and now the Crystal 

Got the same call yesterday from the Cavan Crystal, we have them booked for next year, will have to wait and see how it pans out.

[FarneyMan]

Any of ye hear the rumour about Quinn starting out afresh in the Insurance business again..........ive heard a new company is being setup in Belturbet, "Q2", and alot of the old directors\managers are onboard........

[orangeman]

Any of ye hear the rumour about Quinn starting out afresh in the Insurance business again..........ive heard a new company is being setup in Belturbet, "Q2", and alot of the old directors\managers are onboard........

Couldn't see it, given the amount of mone required to start again.


But given the hikes in premium, it would be a welcome move.

[Declan]

Quinn reveals 'hugely disappointing' losses of €852m
Friday, May 27, 2011 - 09:14 AM



The Quinn group lost €852m in 2009, the company announced this morning.

The losses mainly relate to Quinn Insurance Limited (QIL), which is under administration, and which incurred operating losses of €644m during 2009.

Turnover at QGL (including QIL) amounted to €1.6bn in 2009, down from €2.2bn in 2008.

The chief executive of QGL Paul O'Brien described the numbers as "hugely disappointing".

Net assets for the group's continuing manufacturing operations were €149m in 2009, compared to €392m the previous year.

"Following the appointment of administrators to the QIL business in March 2010, the insurance business is no longer part of our continuing operations.

"I would like to wish the new owners of QIL every success in their efforts to restore the business to full strength and thereby protect the jobs in that business.

"The future of our group now lies in our manufacturing businesses, which are involved in container glass, construction products, plastics & packaging and radiators across a number of jurisdictions."


Read more: http://www.examiner.ie/breakingnews/ireland/quinn-reveals-hugely-disappointing-losses-of-852m-506633.html#ixzz1NXecOXDA

[ludermor]

No idea Sammy.  Yeah very sad indeed.  I've been at a few weddings in the Crystal and I couldn't fault them.  As you say there is very little ground around it but the food and service was excellent.

Whats the problem, it the hotels are sucessful and well run they will sold off as a going concern? Would they not be better off having the badge of failure associated with Quinn?

[supersarsfields]

No idea Sammy.  Yeah very sad indeed.  I've been at a few weddings in the Crystal and I couldn't fault them.  As you say there is very little ground around it but the food and service was excellent.

Whats the problem, it the hotels are sucessful and well run they will sold off as a going concern? Would they not be better off having the badge of failure associated with Quinn?

These aren't Quinn Hotels Ludermor. Crystal and Lough Erne are stand alone hotels in the area. I think the people are just pointing out how things are getting tougher in that border area these days.

Any of ye hear the rumour about Quinn starting out afresh in the Insurance business again..........ive heard a new company is being setup in Belturbet, "Q2", and alot of the old directors\managers are onboard........

This seems to be the worst kept secret in history.

[ludermor]

Apologies 2+2=5!!

[supersarsfields]

No worries. Easy assumption to make given the thread title!!

[supersarsfields]

From the Times


<sup>The family of businessman Seán Quinn have brought Commercial Court proceedings claiming that loans of about €2.34 billion made by Anglo Irish Bank to various Quinn companies and Cypriot-registered companies are unenforceable because they were issued for "an illegal objective of market manipulation" — support of the Anglo share price.

The action by Mrs Patricia Quinn and her five children — Aoife, Colette, Brenda, Ciara and Seán Quinn Jnr — arises from events of the past two years that led to the family losing control of companies in the Quinn group.

Mr Justcie Peter Kelly transferred the case yesterday to the Commercial Court. It involves the largest ever claim in the court's seven year history and is likely to be heard early next year.

Aoife Quinn said in an affidavit the plaintiffs signed personal guarantees in late 2008 over certain loans by Anglo to Cypriot-registered companies owned by the family without being told of the "precarious" financial position of Anglo. They had no independent legal or financial advice and the nature of the loan documents was never discussed with them, she said.

The lending by Anglo to various Quinn companies and to the Cypriot companies, whether directly or via other companies held by members of the Quinn family, "was in support of an illegal objective of market manipulation" prohibited by the relevant EU Directive on Market Abuse, she said.

The lending was "tainted with illegality, or was intended to support an illegal purpose, such that the said loans are not enforceable".

On those and other grounds, the family claim Anglo was not entitled last month to appoint Kieran Wallace as receiver over shares in several Quinn group companies. They also claim the bank cannot pursue them under the guarantees for repayment of the loans to the Cypriot companies.

They also claim they are entitled to hundreds of million Euro in damages as a result of the actions of the bank. They allege negligence, breach of duty and intentional and/or negligent infliction of economic damage.

While unable at this point to give the precise value of the damages claim, Aoife Quinn said the consolidated gross sales of Quinn Group (ROI) Ltd was €2.116 billion in the period to December 31st 2007, with profits of €453 million, and the business was "a substantial going concern".

The net assets of that company was reported in its statutory accounts at some €753 million in December 2007, she added.

Yesterday, Mr Justice Kelly was told Anglo was consenting to the family's action being fast-tracked in the Commercial Court.

The judge noted none of the guarantees provided for the Anglo loans were dated while copy documents of two personal guarantees in the names of Aoife Quinn and Seán Quinn Jnr over certain loans by Anglo to companies registered in Cyprus were unsigned.

When he asked Paul Gallagher SC, for Anglo, whether the original guarantee documents were signed, Mr Gallagher said he understood the documents were in order but he would make inquiries. Counsel added his side would consider whether to join Seán Quinn himself and others as third parties to the action.

The judge observed the case is likely to last several weeks and made directions for the exchange of legal documents with a view to having the case heard early next year.

In seeking transfer, Brian O'Moore SC, for the Quinns, said his side were contending various loans by Anglo to a number of Quinn companies and the Cypriot companies involved an unlawful support of the Anglo share price.

In her affidavit, Aoife Quinn said the action was brought in the plaintiffs' capacity as owners of shares in several companies, including Slieve Russell Hotel Ltd, Quinn Quarries Ltd, Quinn Group (ROI) Ltd, Quinn Group Hotels Ltd, Quinn Finance Holding and Quinn Group Properties Ltd.

The family was claiming charges made in favour of Anglo from late 2003 up to 2009 over shares held in those Quinn companies were invalid, unenforceable and of no legal effect.

They also wanted declarations that the undated guarantees provided by them to Anglo over the liabilities of several Cyprus-registered companies were invalid and unenforceable. Those companies are Lud Investments Ltd, Moshaid Investments Ltd, Opawa Investments Ltd, Pahu Ltd, Tarate Enterprises Ltd and Morboneto Holdings Ltd, all with registered offices at Capital Centre, Nicosia.

Outlining the background, Ms Quinn said Bazzely Consultadori Economica E Particpacoes, a Madeira-incporporated company owned by the Quinn children, made investments of some €750m from Quinn resources to fund CFD (contracts for difference) positions in Anglo prior to the end of 2007.

After September 2007, as Anglo's share price declined, it advanced some €2.34 billion to various Quinn companies, she said. Those advances were made in the full knowledge they were only to be used to support "CFD positions" in relation to Anglo shares and those shares were ultimately held by the children.

On October 7th 2008, about €77.17 million loans were granted to each of five Cypriot registered companies owned by the Quinn children while Eu102 million loans were made to another Cypriot company owned by Mrs Patricia Quinn, Aoife Quinn said. Those loans were then used by the Cypriot companies to buy shares in Anglo.

Ms Quinn said personal guarantees were executed about October 2008 related to those loans. She said the plaintiffs, when they were asked to sign the execution blocks to the personal guarantees, did not know and were not made aware the guarantees were "a purported condition" of the advance of the loans.

The personal guarantees and share pledges were "manifestly improvident" and/or "unconscionable" when executed because they were entered into in the context of borrowing to support Anglo's share price in circumstances where Anglo, its servants or agents, knew of the "precarious financial position" of Anglo but the plaintiffs did not, she said.

There was a significant lack of autonomy on the part of the Quinn plaintiffs in the circumstances surrounding the signing of the guarantees and share pledges, she said. In all the circumstances, Anglo was not entitled to appoint Mr Wallace as share receiver.</sup>

[orangeman]

http://www.independent.ie/business/irish/this-is-still-quinn-country-a-year-after-local-hero-got-the-boot-2663788.html

[supersarsfields]

The first article that actually mentions the court case in Sweden between Anglo and Quinn. I wonder why none of the rest of the papers mentioned much about it considering the impact it could have on Anglo and therefore the state!!

<sup>[Quinn family claim Anglo loaned money for illegal objective
Print |  Email
Swedish court rules in favour of Quinn

Sean Quinn.
Loans of about €2.34 billion by Anglo Irish Bank to Quinn companies are unenforceable as they were issued for the "illegal objective of market manipulation" to support of the Anglo share price, claimed the Quinn family in proceedings which were this week transferred to the Commercial Court.
The action in Ireland comes after Quinn and his family won a court decision in Sweden last week, in which the dismissal of directors of Quinn Investments Sweden (QIS) by a receiver appointed by Anglo Irish Bank was overturned. The Stockholm District Court found that the dismissal of QIS directors and their replacement with Kieran Wallace of KPMG was not "duly approved by all shareholders" and was therefore invalid.
This week's action in the Irish courts by Mrs Patricia Quinn and her five children - Aoife, Colette, Brenda, Ciara and Sean Quinn Jnr - arises from events of the past two years that led to the family losing control of companies in the Quinn group.
Mr Justice Peter Kelly transferred the case on Monday to the Commercial Court. Aoife Quinn said in an affidavit the plaintiffs signed personal guarantees in late 2008 over certain loans by Anglo to Cypriot-registered companies owned by the family without being told of the "precarious" financial position of Anglo. They had no independent legal or financial advice and the nature of the loan documents was never discussed with them, she said.
The lending by Anglo to various Quinn companies and to the Cypriot companies, whether directly or via other companies held by members of the Quinn family, "was in support of an illegal objective of market manipulation" prohibited by the relevant EU Directive on Market Abuse, she said.
The lending was "tainted with illegality, or was intended to support an illegal purpose, such that the said loans are not enforceable".
On those and other grounds, the family claim Anglo was not entitled last month to appoint Kieran Wallace as receiver over shares in several Quinn group companies. They also claim the bank cannot pursue them under the guarantees for repayment of the loans to the Cypriot companies.
They further claim they are entitled to hundreds of million Euro in damages as a result of the actions of the bank. They allege negligence, breach of duty and intentional and/or negligent infliction of economic damage.
While unable at this point to give the precise value of the damages claim, Aoife Quinn said the consolidated gross sales of Quinn Group (ROI) Ltd was €2.116 billion in the period to December 31, 2007, with profits of €453 million, and the business was "a substantial going concern".
The net assets of that company was reported in its statutory accounts at some €753 million in December 2007, she added.
Yesterday, Mr Justice Kelly was told Anglo was consenting to the family's action being fast-tracked in the Commercial Court.
The judge noted none of the guarantees provided for the Anglo loans were dated while copy documents of two personal guarantees in the names of Aoife Quinn and Sean Quinn Jnr over certain loans by Anglo to companies registered in Cyprus were unsigned.
When he asked Paul Gallagher SC, for Anglo, whether the original guarantee documents were signed, Mr Gallagher said he understood the documents were in order but he would make inquiries. Counsel added his side would consider whether to join Sean Quinn himself and others as third parties to the action.
In seeking transfer, Brian O'Moore SC, for the Quinns, said his side were contending various loans by Anglo to a number of Quinn companies and the Cypriot companies involved an unlawful support of the Anglo share price.
In her affidavit, Aoife Quinn said the action was brought in the plaintiffs' capacity as owners of shares in several companies, including Slieve Russell Hotel Ltd, Quinn Quarries Ltd, Quinn Group (ROI) Ltd, Quinn Group Hotels Ltd, Quinn Finance Holding and Quinn Group Properties Ltd.
The family was claiming charges made in favour of Anglo from late 2003 up to 2009 over shares held in those Quinn companies were invalid, unenforceable and of no legal effect.
They also wanted declarations that the undated guarantees provided by them to Anglo over the liabilities of several Cyprus-registered companies were invalid and unenforceable. Those companies are Lud Investments Ltd, Moshaid Investments Ltd, Opawa Investments Ltd, Pahu Ltd, Tarate Enterprises Ltd and Morboneto Holdings Ltd, all with registered offices at Capital Centre, Nicosia./sup]</sup>

[Orangemac]

Any of ye hear the rumour about Quinn starting out afresh in the Insurance business again..........ive heard a new company is being setup in Belturbet, "Q2", and alot of the old directors\managers are onboard........

Had heard this as well. Some of the directors have been spotted around vacant offices in Belturbet. Supposedly Elliotts have an insurance licence that they are going to use.

[supersarsfields]

Things still going strong with the court cases over in Sweden.

Anglo not getting it all their own way from the sound of it!

From the times.
<sup>ANGLO IRISH Bank is entitled to just €129 million from a property company in Sweden controlled by Seán Quinn's family, lawyers for the family argued yesterday.

Anglo wants a bankruptcy receiver appointed to Quinn Investments Sweden, the holding company for the family's international properties in Sweden, Britain, Russia, Turkey, Ukraine and India.

The receiver would have the power to liquidate the company, a major entity in the Quinn Group, and sell its properties. Together they are estimated to be worth about €500 million.

Anglo however is only entitled to claim the amount of the loans provided specifically to Quinn Investments from the Anglo funds – about €129 million, lawyers for Quinn Investments told the Stockholm district court.

Although Anglo's guarantee on the loans included all Quinn companies, under Swedish law, firms could only guarantee loans they gained from in principal, they said.

In a sale process that could take as little as three months, Quinn Investments Sweden could raise €344 million through the sale of properties in Russia, more than enough to cover the amount it owed Anglo, lawyers for Quinn Investments said.

For that reason, they argued, the company could not be declared insolvent and since the €129 million was properly secured, the bank could not seek a liquidation.

Richard Woodhouse, the Anglo executive in charge of negotiating the loan repayment with the Quinn family, offered a lower estimate for the value of Quinn Investments assets at between US$380 and $400 million and said a sale process would take "considerable time". "In my view, liquidation of satisfactory value would take 18 months to three years," he said in testimony. "It is possible to sell at an accelerated basis but at a lower value than I quote."

Lawyers for Quinn Investments will present an expert on Russian real estate to the court when the proceedings resume on Tuesday.

Mr Woodhouse added that the debts in question were "absolutely valid and overdue for payment".

The Quinn family owes Anglo almost €2.9 billion, of which €2.3 billion relates to loans that covered the losses on Anglo shares as a result of the 2008 financial crash. Lawyers for Quinn Investments say the loans must be proven valid before any amount can be claimed.

The Quinns claim the loans were advanced under the "false guise" of property lending when in reality they were used to cover losses on the family's investment in Anglo shares. Those investments were made through contracts for difference, a type of leveraged bet on the bank's share price.

Anglo contracts: how they worked 

FOR THE first time in open court, a Quinn executive yesterday outlined how the loans from Anglo to cover losses on stock market investments were obtained.

Former finance director Dara O'Reilly said the use of contracts for difference began in the autumn of 2005 and involved investments in financial services companies, oil companies and some airlines, including Ryanair.

By early 2007, worldwide equity markets were under pressure and the share price of Anglo deteriorated. At first, the losses or margin calls on Anglo investments were financed by Quinn resources.

However, when those resources became "extremely limited", the group began to cover the debts with loans from Anglo, a practice that became more frequent.

Mr O'Reilly would contact the manager at Anglo and give a "rough calculation" of how the margin call had been determined.

Documents were drawn up stating "property development " as the purpose of the loan and Mr O'Reilly would then obtain the necessary signatures so the funds could be transferred, he said.

"When I rang the bank on a very frequent basis in 2008, it was very clear it was for margin calls."</sup>

[orangeman]

http://www.rte.ie/news/2011/0627/anglo.html