The High Court has refused applications by bankrupt businessman Seán Quinn and eight of his family members to discharge injunctions restraining all or any of them from dealing with assets of a number of Quinn companies.

Mr Justice Michael Peart said yesterday that the balance of justice favoured leaving all of the injunctions in place. The injunctions freeze family and company bank accounts.

'Quinn conspiracy'
The judge ordered the Irish Bank Resolution Corporation, in what is known as the Quinn conspiracy to put assets beyond the reach of the bank, to lodge €5 million in court to "fortify" undertakings IBRC had given to the court as to damages prior to the bank having been liquidated. The plaintiffs are Irish Bank Resolution Corporation Ltd in liquidation; Quinn Investments, Sweden; and Leif Baecklund.

The applications to quash the injunctions had been made by Seán, Ciara, Colette, Brenda and Aoife Quinn and Seán Quinn jnr, as well as Niall McPartland and a number of internationally based Quinn companies.

Mr Justice Peart said that when the injunctions were applied for by the IBRC, the corporation had given the usual undertaking as to damages to the court. However, on February 13th, the Irish Bank Resolution Corporation Act had become law and, under that legislation, the Minister for Finance had made a special liquidation order in respect of IBRC.

He said the Quinn family and associated companies had sought to have the injunctions discharged on the basis that the undertakings as to damages were worthless once IBRC became insolvent, unable to pay its debts and in liquidation.

The Quinn family members claimed the €5 million payment into court offer was hopelessly inadequate to satisfy any claim arising in the event it was concluded in due course that the injunctions ought never to have been granted.

They had submitted the injunctions would not have been granted if the undertakings as to damages had not been given. They referred to the fact that one of two appointed special liquidators had conceded that IBRC was insolvent and had stated publicly that historical claims against the corporation would rank only as unsecured debts in the liquidation.

The Quinns estimated that the losses that the injunctions would cause them, in the event of IBRC and the two other plaintiffs losing their case, would be in the order of €700 million.

Mr Justice Peart said Martin Hayden, counsel for the Quinns, had asked as a condition of the injunctions remaining in place that the Minister for Finance be required to provide an undertaking or to underwrite the undertaking already in place and as fortified.

He said the court was not satisfied that such a condition should be imposed as the estimated losses to the Quinns had been based on an estimate of the current value of certain assets.

'Fortification of undertakings'
Mr Justice Peart said the €5 million "fortification of the undertakings" should be paid into court by the plaintiffs before the end of August. Costs of the proceedings will be dealt with at the end of October. Peter Darragh Quinn was not a part to the applications before the court.