Quinn Insurance in Administration

[supersarsfields]

They really don't want this issue heard in a court.

The Irish Bank Resolution Corporation has asked the Supreme Court to hear urgently its appeal aimed at preventing the Quinn family litigating their claims that the former Anglo Irish Bank illegally advanced €2.4 billion loans from 2008 to Quinn companies to prop up its falling share price.

But Martin Hayden SC, for the Quinns, said it was "amazing" that State-owned IBRC (into which Anglo was merged ) was contending that no such unlawful loans were advanced when "another arm of the State" has brought criminal proceedings against former Anglo executives alleging they were.

He said IBRC's appeal was not urgent, and that the Quinns only had one senior and a junior counsel available to deal with more urgent matters, including their application to join the Central Bank and the Department of Finance as co-defendants with IBRC on grounds alleging they were well aware of the allegedly unlawful loans.

A July 9th, 2008, email from then Anglo chief executive David Drumm entitled "regulator squared" is among documents relied on by the Quinns to support those claims.

Emails between Mr Drumm and Anglo colleague Declan Quilligan that day began with one from Mr Drumm with "regulator squared" in the subject field but no text, to which Mr Quilligan replied: "Excellent! I hope he was grateful!"

Mr Drumm replied: "Excited I would say – I think he is lying awake at night like the rest of us."


Infamous
Referring to those emails, Aoife Quinn said in an affidavit that she believed the apparent apprehension of the regulator and Anglo was that the bank was running out of time in terms of the funding it could continue to provide to meet margin calls in support of its own shares.

It was around then the "infamous Maple 10 consortium" was put in place and one Anglo email referred to them as the "10 disciples", she said.

In seeking priority yesterday for its appeal against the High Court's finding that the Quinns were entitled to litigate claims that the €2.4 billion in loans breached section 60 of the Companies Act (outlawing loans to prop up an institution's share price) and market abuse regulations, Paul Gallagher SC, for IBRC, said its appeal was "of very singular urgency" because it related to liability for loans of €2.4 billion and the Quinns' denial of liability for those.

He said if the Supreme Court overturned the High Court's decision that would greatly reduce the expected six to eight-month duration of the family's case as the claims of market abuse and illegality would not have to be addressed. IBRC was also still trying to recover dissipated assets.

When Mr Gallagher said the loans at issue in the family's case were not the same loans subject of the criminal prosecutions, Mr Hayden said that was incorrect.

Mr Hayden handed in a timeline to the Chief Justice, Ms Justice Susan Denham, outlining the various proceedings involving the Quinns which will have them in court on several dates this month, next month, August and October.

His side was trying to prepare for those hearings with very limited resources while the bank had three senior counsel, three juniors and solicitors.

There was no urgency as the criminal proceedings against the former Anglo executives were not for hearing until January 2014.

The Chief Justice said she would give the Quinns to October 31st to file their submissions opposing the appeal and would decide, after reading the submissions, whether it merited a priority hearing.


Liquidators
Next month the Commercial Court will deal with the Quinns' application to join the Central Bank and Department of Finance as co-defendants with IBRC to the family's case.

The application is opposed by Kieran Wallace, one of the IBRC special liquidators, on grounds including it comes too late and raises a different cause of action.

In her affidavit for that application, Aoife Quinn says emails and other documents discovered by IBRC, plus various reports and Dáil debates, show the then regulator Patrick Neary and the Department of Finance knew Anglo was advancing unlawful loans to Quinn companies during 2008.


Inconceivable
It was "simply inconceivable" the Minister for Finance was not fully aware of the actions of Anglo, in conjunction with the regulator, to unwind Quinn Contract for Difference positions in Anglo shares, she says.

The Quinns claim the department was actively involved in Anglo's affairs throughout 2008 and that its conduct in January 2009 was effectively attempting to cover up its knowledge and involvement in matters from September 2007.

[muppet]

He also said that it was his belief that Taoiseach Enda Kenny must have known about his ill-fated acquisition of shares in Anglo Irish Bank.

He didn't really say that did he?

Kenny questioned Cowen in the Dail that the loans were illegal and in breach of Section 60 back I 2009. So I'd say he had a fair idea what was going on.

Ah come on.

The loans were in summer 2008.

[supersarsfields]

I know. Did you read the whole interview? He wasn't saying that he was aware of the loans before they happened. He was saying that Enda was aware of the illegality of the loans from 2009, and obviously was still aware when he became Taoiseach. From reading the article, it looks like it might have been in response to a question the way it jumps from one thing to another. 

[muppet]

I know. Did you read the whole interview? He wasn't saying that he was aware of the loans before they happened. He was saying that Enda was aware of the illegality of the loans from 2009, and obviously was still aware when he became Taoiseach. From reading the article, it looks like it might have been in response to a question the way it jumps from one thing to another.

I didn't read it at all as I thought if that is the headline then there is nothing of value in the article.

Saying Kenny knew about it, but actually meaning he knew when everyone else knew, long after the event, is simply a waste of breath.

[supersarsfields]

I know, that's why it reads more like it was in answer to a question than a statement in itself.

[supersarsfields]

The Quinns back in court again today to try and join the DOF and central Bank. Can't see Judge Kelly ruling in their favour so would expect to see this one go to the Surpreme Court.

The Department of Finance and Central Bank conspired with Anglo Irish Bank in its advancing more than €2 billion in loans to Quinn companies for the unlawful purpose of propping up its share price, it has been alleged at the Commercial Court.

That conspiracy involved the department arranging for documents from Anglo to be "significantly amended" to disguise the true extent of its knowledge about what was happening in relation to the loans, the Quinn family claims.

The family of bankrupt businessman Sean Quinn want the Department and Central Bank, in their capacity as regulators, joined as co-defendants with Anglo in their action denying liability for those loans.

The family are alleging conspiracy, breach of duty and misfeasance in public office against those parties.

Martin Hayden SC, for the family, said documents showed officials in the department were aware at "every step" of the way from October 2007 of the difficulties being experienced by Anglo in dealing with the Contract for Difference positions built up by Sean Quinn in the bank.

In an affidavit, Aoife Quinn said the department arranged for documents to be "significantly amended" to disguise the extent of its knowledge that Anglo had unlawfully loaned vast sums to support its share price.

Ms Quinn said various documents, including material discovered by Anglo, showed the Deparment, Financial Regulator, the Central Bank and Anglo were all aware the bank was loaning huge sums to Quinn companies to meet margin calls on Contract for Difference positions built up by her father in Anglo.

While some documents asserted the loans were for "working capital purposes", other documents, including trasncripts of phone conversations between various former Anglo executives, made clear their true purpose was to meet margin calls, she said.

After the bank was nationalised, the Department had arranged for alterations in a draft letter from Anglo's new chairman, Donal O'Connor, to the Minister, she said. That letter was responding to the Department's own request for a report on lending for the purpose of acquiring shares in the bank, it has been claimed at the Comemrcial Court.

The first draft of the letter involved a "categorical acceptance" Anglo was lending for the purpose of acquiring its own shares but the letter ultimately sent to the Minister for Finance, said exactly the opposite, she said.

The application to join the Department and Central Bank is opposed by Kieran Wallace, special liquidator of Irish Bank Resolution Corporation (formerly Anglo) on grounds including it will fundamentally alter the nature of the case. He has also alleged delay by the Quinns in seeking to have the two parties joined.

Mr Justice Peter Kelly began hearing the application this morning when he was told the Quinns have prepared a draft plenary summons outlining their claims against the Department and Central Bank.

In affidavits, Ms Quinn has referred to many documents, including transcripts of phone calls and emails between various Ango executives; the "O'Connor Report" of January 2009 reviewing transactions concerning the Quinn group; communications between her father and the bank and communications with the Department and Minister of Finance.

An applicaiton to Anglo's credit committee dated June 3rd 2008 , stated Sean Quinn had requested the bank to provide €140 million funding. That document continued: "This is to be used to fund cash calls relating to the recent fall in the Anglo share price", she said.

Anglo, she alleged, had knowingly drafted loan facility letters in an incorrect and false manner to suggest monies were advanced for "working capital requirements" when they were really being advanced to meet margin calls on the Quinn CFDs.

After Anglo was nationalised, its newly apointed chairman Donal O'Connor had written to then Minister for Finance Brian Lenihan on February 4th 2009, she said.

A previous draft of that letter had said: "As requested, I enclose a report on the extent of lending for the purposes of share acquisitions and contracts for difefrence generally and Anglo shares in particular". This draft represented "a categorical acceptance on behalf of Anglo to having funded the purchase of its own shares", she said.


However,the letter ultimaterly sent to the Minister, dated February 4th 2009, was amended to read: "The total extent of lending by the bank for the purposes of acquiring publicly quoted shares is €1.777bn. We do not lend for the purpose of taking positions in contracts for difference. Of the total, €918.6m related to lending for the purpose of acquiring shares in Anglo.."

It was difficult to marry the two drafts on this issue, Ms Quinn said. In her view, such "a significant change in wording" in response to the Minister's request showed the Department of Finance dictated the terms of the response to its own request.

Her view was supported by a file note discovered by Anglo, dated February 3rd 2009, which set out the minutes of a meeting with various people including Ann Nolan of the Department and Donal O'Connor, she said. Under the heading "lending against bank's shares", that note stated: "DO'C provided a draft of the letter which is proposed wil be sent to the Minister tomorrow in response to his letter received late last week. AN agreed to read the letter and revert with any comments."

It was clear the Department wrote to Ango about lending secured against its shares, Anglo drafted a letter for the Department, the Dept reviewed the Anglo draft and significanty amended it so it stated the opposite to what was in the original draft, she said.

This led to a heightened concern on the Quinns part the Department, knowing what went on in Anglo, "has actively engaged in seeking to cover up the true state of affairs in the knowledge of likely further legal proceedings". The Minister's knowledge of what went on was greater than the documents suggested as it was now clear they did not truly represent matters, she claimed

A letter from Donal O'Connor to Ann Nolan dated March 24th 2009 acknowledged working capital was really a reference to margin calls, she said.

Other documents discovered by Anglo made clear the regulator was apprised by Anglo of matters on an ongoing basis and knew it was lending to fund margin calls, she said. It seemed the regulator was prepared to tolerate this in the short term in the expectation the Quinn CFD holding would be diluted. The regulator was also aware of and actively participated in the design and execution of the "Maple 10" transaction involving Anglo making loans to its best customers to be used to try and dilute the Quinn CFDs, she claimed.

The hearing continues.

[orangeman]

The family of bankrupt businessman Seán Quinn has failed in its attempt to lift orders freezing their bank accounts below €50 million.

Judge Michael Peart said he was satisfied that the "balance of convenience" remains in favour of leaving the orders in place.

Irish Bank Resolution Corporation secured the orders against the five Quinn children and three of their spouses.

The proceedings alleged various members of the family and some companies engaged in a scheme to put assets, with an estimated value of $500m, in the Quinn international property group beyond the bank's reach.

The bank had claimed that many of those assets are now "distressed" and it only has full control of one, a property in Moscow.

The Quinns had disputed the bank had valid security of the assets and claimed its own actions had adversely affected the value of the assets.

[supersarsfields]

Getting personal now.

Tim Healy – 07 October 2013

THE High Court has given permission to the family of bankrupt former billionaire Sean Quinn to serve legal proceedings on former Anglo Irish Bank CEO David Drumm in the United States.

The Quinns intend to sue Mr Drumm in the Irish courts, along with ten other former Anglo directors, and the Central Bank and Department of Finance in their capacity as regulators,  over loans of some €2.34bn allegedly unlawfully issued by Anglo to Quinn companies during 2007 and 2008. 



It is alleged those loans were intended to fund margin calls on financial derivatives, known as "Contract for Difference" (CFD) positions, held by the Quinn family in Anglo shares.



Mrs Patricia Quinn and her five children claim Mr Drumm was, between 2004 and 2008, directly involved in, and played "a leading role" as CEO, in the alleged actions of Anglo.



The ten former directors are - Declan Quilligan, Wetherby Place, London; Patrick Whelan, Coast Road, Malahide, Co Dublin; Lar Bradshaw, Church Road, Killiney, Co Dublin; Fintan Drury, Old Russian Village, Kilquade, Co Wicklow; Noel Harwerth, Grosvenor Square, London; Anne Heraty, Highfield Road, Rathgar, Dublin; Michael Jacob, Newtownpark Avenue, Blackrock, Co Dublin; Willie McAteer, Auburn Villas, Rathgar, Dublin; Gerard William McGann, Stonehouse, Donnybrook, Dublin;  and Edmond Francis Sullivan, Linden Fields, Grove Avenue, Blackrock, Co Dublin. 



The Quinns allege the former directors either collectively or individually authorised the advancing of loans to Quinn companies and this was illegal and/or wrongful and caused damage to the Quinns.



They are claiming damages against all defendants for alleged conspiracy, breach of duty including statutory and fiduciary duties, negligence, and misfeasance in public office.



In reply to Mr Justice Kevin Cross yesterday about the "status" of Mr Drumm, Martin Hayden SC, for the Quinns, said Mr Drumm was not a bankrupt and his side were proceeding against him.




Counsel also indicated his clients would apply at a later stage to have their proceedings against the various defendants fast-tracked in the Commercial Court.



The Quinns intend these latest proceedings against the regulators and former directors will be consolidated with their existing proceedings against Irish Bank Resolution Corporation (IBRC) in which they contend they are not liable for the €2.34bn loans on grounds those were unlawfully made to prop up Anglo's then plummeting share price.



The existing action against IBRC, known as the main action, has been "parked" pending the conclusion of criminal proceedings against Mr Whelan, Mr McAteer and former Anglo Chairman Sean Fitzpatrick, who has been adjudicated bankrupt.



Yesterday, Mr Justice Cross granted Mr Hayden leave to issue proceedings against Mr Drumm and to serve the papers on him at an address at Old Colony Road, Wellesley, Massachusetts, USA.



In the intended proceedings, the Quinns allege the defendants, their servants and/or agents conspired to commit illegal and/or unlawful acts through breaches of Section 60 of the Companies Act and the regulations issued under the EC Market Abuse Directive.

[muppet]

Getting desperate more like.

Even if they win that, and it might be of great value to the rest of us if they did, I can't see them getting their debt written off. Handling ill gotten goods doesn't usually go down well in the courts.

I think I would enjoy seeing some of the senior Anglo directors in the dock though.

[supersarsfields]

I wouldn't call it desperate. It makes no difference to the case against IBRC/ DOF. That's the only one that matters now with regards to compensation. But I'm sure it does help to shine a light on the individuals within the bank, especially considering Anglo was going to be left out of any enquiry.

Next week will be important for the Quinns as they seek to get all assets of QG ring fenced from being sold of before the court case next year.

[muppet]

I wouldn't call it desperate. It makes no difference to the case against IBRC/ DOF. That's the only one that matters now with regards to compensation. But I'm sure it does help to shine a light on the individuals within the bank, especially considering Anglo was going to be left out of any enquiry.

Next week will be important for the Quinns as they seek to get all assets of QG ring fenced from being sold of before the court case next year.

The reason I say desperate is because I can't see how it helps them.

"It is alleged those loans were intended to fund margin calls on financial derivatives, known as "Contract for Difference" (CFD) positions, held by the Quinn family in Anglo shares."

They admit the loans were to pay off their debts (margin calls) from the disastrous CFDs. They already were in debt and don't appear to dispute this. Anglo tried to save Quinn (and thus themselves) by loaning them this money to meet the margin calls. In this way Quinn debts were simply transferred from the CFDs to Anglo. But the Quinns are trying to have their cake and eat it by using Anglo to loan them money to pay off their debts, and then claim Anglo shouldn't have given them the money so they don't owe anything!

Thus now the Quinns want me as a taxpayer to pay for all this.

[supersarsfields]

The CFD's were held by SQ not the Quinn family. SQ could have went bust, and taken certain assets with him, but not the group. The Group was only tied in when Anglo got backdated Guarantees signed by the children without legal representation.

And Anglo didn't try to save Quinn, they were putting pressure on him to take the loans and it wasn't for his benefit- in fact they were pushing him to continue to look like a "Buyer not a Seller" of Anglo shares right up to 2008.
And this was without taking into account the fact that anglo, the government at the time & the regulator knew that Anglo's books were cooked.

They're not asking you to pay for anything. They are asking for assets back that the state have taken that they don't believe they have a right to. If I had assets taken from me by someone that I don't believe owns them, I'd be asking for them back as well regardless of whether it was a tax payer or not.

[muppet]

The CFD's were held by SQ not the Quinn family. SQ could have went bust, and taken certain assets with him, but not the group. The Group was only tied in when Anglo got backdated Guarnatees signed by the children without legal representation.

And Anglo didn't try to save Quinn, they were putting pressure on him to take the loans and it wasn't for his benefit- in fact they were pushing him to continue to look like a "Buyer not a Seller" of Anglo shares right up to 2008.
And this was without taking into account the fact that anglo, the government at the time & the regulator knew that Anglo's books were cooked.

They're not asking you to pay for anything. They are asking for assets back that the state have taken that they don't believe they have a right to. If I had assets taken from me by someone that I don't believe owns them, I'd be asking for them back as well regardless of whether it was a tax payer or not.

Here are a few paragraphs from Anglo Republic by Simon Carswell (page 151/152).

As Anglo's share price fell, the bank continued to supply Sean Quinn with 'working-capital' facilities to enable him to meet his margin calls. The board approved the loans, and the Financial Regulator was notified.
An internal report compiled almost two years earlier shows the rapid growth of Quinn's borrowings from the bank as the value of his investment in it fell further and further. Over a six-day period around the St. Patrick's Day massacre Quinn drew down €367.5 million - an average of €60 million a day - to meet the mounting losses on his investment, according to the Anglo report........

.......On 18 March Quinn Group Chief Executive Liam McCaffrey fired off a letter to Michael O'Sullivan, the Anglo lender who managed Quinn's account at the bank, in relation to that day's €220 million draw-down. The letter was astonishing. Writing on behalf of Quinn, McCaffrey effectively signed over potential control of the Quinn Group, a business he had built up through hard graft over a thirty-year period. In return for the latest loan, Quinn agreed to hand over the share certificates in the main company at the apex of the Quinn corporate pyramid. If covered the ownership and ultimate control of his many and varied businesses........

.....'I can confirm that as additional comfort in relation to the security on this facility the Quinn family are prepared to support their personal guarantees by giving Anglo Irish Bank Corporation plc physical custody of their shares in Quinn Group ROI Ltd,' said McCaffrey in the letter to the bank.

As for this: "they were putting pressure on him to take the loans and it wasn't for his benefit- in fact they were pushing him to continue to look like a "Buyer not a Seller" of Anglo shares right up to 2008."

I think you are seriously misinformed. Quinn bought the shares via a CFD. Anglo didn't even know about it, let alone encourage it. Fitzpatrick & Drumm first met Quinn to discuss the CFD on 11 sep 2007 when Quinn told them he held 24% of Anglo shares. Anglo Republic page 111: "Fitzpatrick and Drumm were gobsmacked.....Drumm later told colleagues it was the only time he ever saw Fitzpatrick rendered speechless". After this meeting Quinn actually increased his holding to 28-29%. Anglo wanted him to reduce his holding as they saw it as extremely dangerous for the bank. That is what the Maple 10 were about.

[supersarsfields]

The details regarding the letter by Liam McCaffrey will be involved in the case so I'll not go into too that. But there's a lot more than what was in Anglo Republic, including the attempt by IBRC (Not even Anglo!!) To get retrospective documents signed by the Quinn Children.

I'm not misinformed regarding the "buyer not seller" comment. That was actually part of the Anglo tapes.

One of the most hotly contested issues between the two sides is whether or not Anglo chiefs encouraged the former billionaire's massive, and doomed, gamble on their bank's shares in the run up to the banking crisis of 2008.

The latest Anglo Tapes do reveal how Mr Quinn was told by Mr Drumm that he needed to get a message out of confidence in the bank by saying he was "a buyer not a seller" of the bank's shares.

Anglo bosses were desperate to prevent the collapse in the price of their bank's shares that would have happened if Mr Quinn had started publicly ditching his massive holdings of the stock, the tapes show.

That's from the independent. They knew, that SQ was still buying shares in the bank in 2008 at a time when the directors knew it was going to the wall.

And in seperate news I see the Quinn group attempting fraud of their biggest glass customer. A customer who is responsible for 20% of it's business, diagio. When a batch of glass worth close to a million was returned due to quality issues, the head hunchos in Quinns decided it would be a better idea to re label the same shipment and send it back out to them rather than recyling and redoing. But diagio got wind, so now they're whole contract is in danger. These are the sort of people running the show now. People who are selling of assets like plant and machinery to try and balance books!! Paul O'Brien should have been roaded out of there ages ago.

[muppet]

The details regarding the letter by Liam McCaffrey will be involved in the case so I'll not go into too that. But there's a lot more than what was in Anglo Republic, including the attempt by IBRC (Not even Anglo!!) To get retrospective documents signed by the Quinn Children.

I'm not misinformed regarding the "buyer not seller" comment. That was actually part of the Anglo tapes.

One of the most hotly contested issues between the two sides is whether or not Anglo chiefs encouraged the former billionaire's massive, and doomed, gamble on their bank's shares in the run up to the banking crisis of 2008.

The latest Anglo Tapes do reveal how Mr Quinn was told by Mr Drumm that he needed to get a message out of confidence in the bank by saying he was "a buyer not a seller" of the bank's shares.

Anglo bosses were desperate to prevent the collapse in the price of their bank's shares that would have happened if Mr Quinn had started publicly ditching his massive holdings of the stock, the tapes show.

That's from the independent. They knew, that SQ was still buying shares in the bank in 2008 at a time when the directors knew it was going to the wall.

And in seperate news I see the Quinn group attempting fraud of their biggest glass customer. A customer who is responsible for 20% of it's business, diagio. When a batch of glass worth close to a million was returned due to quality issues, the head hunchos in Quinns decided it would be a better idea to re label the same shipment and send it back out to them rather than recyling and redoing. But diagio got wind, so now they're whole contract is in danger. These are the sort of people running the show now. People who are selling of assets like plant and machinery to try and balance books!! Paul O'Brien should have been roaded out of there ages ago.

Hang on a second. You are twisting things and ignoring context to suit your argument.

The bit in bold conflicts with Carswell's (to date unused) account and is inconsistent with the secretive nature of CFDs. Quinn told Anglo he had 24% at his first meeting with Fitzpatrick and Drumm. That was the first or the board they knew of it. How could they have encouraged him to do that when they were absolutely horrified when they became aware of it?

The Anglo tapes saying Quinn or Anglo should put out a message that Quinn was a 'buyer not a seller' is irrelevant. It is not the same as saying: 'Sean, you must buy more shares'.

'Putting out a message' is what people do when they are spinning or trying give given an impression that often is completely opposite to the reality. But it means nothing. The facts are that they wanted him to reduce his holding, they founds buyers (Maple 10) to help him do that and SQ bought the extra shares in 2008 despite Fitzpatrick and Drumm telling him to 'unwind' his holding.

Anglo believed that Quinn saw the share price rising but didn't connect that to his own buying and decided to buy more!

Regardless, as the Quinn family has not included Sean Quinn nor Liam McCaffrey along with the Anglo directors in their case I personally can't take it seriously.

Back to the Indo allegation  , can you provide another reasonably reliable source that alleges the Anglo directors encouraged Quinn directly to enter the CFDs?