THE FAMILY of troubled Fermanagh businessman Seán Quinn said yesterday that they intend to repay all of the debt that they owe.
The family owes €2.8 billion to Anglo Irish Bank and reports at the weekend suggested that the nationalised bank has written down this sum to zero.
A statement issued on behalf of the Quinn family last night said they had “not sought, or been offered, as part of any consensual restructuring of the family’s indebtedness, any write-off whatsoever of any of the debt due.
“This has been the unequivocal and consistent position of the Quinn family from the outset and remains its firm commitment to the Irish taxpayer,” the family added.
The Quinns said a significant element of the repayment of debt will result from a realisation of “substantial returns” from Quinn Insurance Ltd, which is currently in administration and the subject of a sale process.
The Quinns said the returns would be generated under a proposal being considered by Anglo Irish Bank. “The family believes that, if the proposal is implemented, repayment to the Irish taxpayer will be fully achieved.”
Anglo is believed to have submitted a bid to the Quinn Insurance administrators Grant Thornton. This offer is thought to include the participation of a trade player.
Sources close to the Quinn family indicated that they expect to participate in Anglo’s bid for the insurer. But it is understood that Anglo’s offer for the business does not include participation by the Quinns.
It also remains to be seen if Anglo, which is effectively now in wind down, would be allowed to take control of Quinn Insurance by the Financial Regulator.
Quinn Insurance is one of Ireland’s largest insurers and the regulator might prefer that another party take control of the business to secure its long-term future.
In the event of another party acquiring Quinn Insurance, it is highly unlikely that Mr Quinn and his family will extract any value from the deal.
This would place a question mark over the family’s ability to repay its Anglo loans, which were used to fund Mr Quinn’s purchase of shares in the failed bank.
The Quinn family yesterday also said its various operations “continue to trade very profitably” but no further detail was given.
Quinn is involved in a number of construction-related activities that have been hit by the collapse of the Irish property market and recession in Britain.
