Department blocks deal with Quinns
THE Department of Finance has blocked a planned agreement between the Quinn family and the former Anglo Irish Bank.
The proposal arose in tentative talks ahead of a looming €4.5billion court battle, but it has been reported that in light of the Siteserv controversy and other issues, talks have ended on the deal.
The Quinn family are suing the State for €4.5billion, which they say is compensation for the loss of their business empire. The action relates to loans of more than €2.3billion which they allege were unlawfully issued by the bank to Quinn companies in 2007 and 2008. Junior Finance Minister Simon Harris said yesterday that the matter would now go to litigation but denied that it was linked to the Siteserv controversy.
He said negotiations between the two parties had failed and this would ‘likely be settled by the courts’.
He said: ‘I wouldn’t link it directly to the Siteserv issue. There were ongoing negotiations, the special liquidator has a duty to maximise the return for the creditors and in this case maybe the taxpayer. Those talks were ongoing. The minister does not have an explicit role in approving the special liquidator’s roles.
‘I can tell you that the best information available to me is that the negotiations have now stalled. There has been a continuing flow of information to the special liquidator, and it is highly likely now that the matter will be resolved through litigation in court. It is very sensitive and I don’t think it would be helpful to comment further on it.’
He told RTÉ radio: ‘I am not privy directly to the talks but my understanding is the special liquidator was ad idem [in agreement] with others with the view that this wouldn’t have been successful with negotiations.’ He said he did not know if the decision had been relayed to the Quinns. When asked when the decision was made, before or after the Siteserv review, he said: ‘My clear understanding is before the Siteserv review.’
He said that there had been discussions between the special liquidator and the Department of Finance.
The 2012 sale of the Siteserv company to a company controlled by billionaire Denis O’Brien has been a continuing political issue.
Siteserv was sold by IBRC (formerly Anglo) for €45million while €105million was written off by the State.