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billion.
But yesterday Seán Quinn’s business empire was prised from him, leaving the tycoon facing ruin and prosecution.
The 63-year-old, who spent almost 40 years building up Quinn Group, faces corporate governance charges for burdening the company with more than £3,5 billion in debt.
The Irish taxpayer will be expected to pick up the tab for any shortfall.
The debt-ridden group will now fall into the hands of Anglo Irish Bank – which has itself cost the taxpayer almost £26,5 billion to date – and US insurance firm Liberty Mutual. The group, which employs 2 700 workers, operates in a wide-range of sectors, including property development, insurance and hotels. Yesterday a share receiver was sent in, whose first act was to put a number of non-executive directors on to the board, taking control away from the Quinn family.
The Irish Department of Finance announced: “Seán Quinn and the Quinn family will no longer have any role in the management, operations or ownership of the Quinn Group.”
Mr Quinn’s troubles started when he gambled on “contracts for difference” in 2007 and 2008, investing heavily in the belief that Anglo shares would hold their value.
But they didn’t and in what was known as the “St Patrick’s Day Massacre”, three years ago, the stock went into a fatal tailspin.
He confessed to losing an astonishing £1,75 billion at the time. The former billionaire’s foray into Anglo share speculation helped bring about the bank’s collapse and with it the Irish economy. But Anglo chairman Mike Aynsley said yesterday that it would be business as usual for customers in the insurance arm.
As the news emerged, radio adverts were running for Quinn Direct, boasting that 275 000 customers had renewed in the last year. Mr Aynsley also insisted that the Irish jobs were safe, although 24 will be lost at an office in Manchester.
The Quinn Group employs 1 000 in Ireland and 1 700 in Britain and Europe. But the Quinn Employee Forum yesterday handed in a petition of more than 90,000 signatures for Michael Noonan, urging the Finance Minister to protect jobs.
Spokesman John Fitzpatrick said: “We believe that if Quinn Insurance is disposed of to a foreign entity there will be no job security.”
Yesterday, Mr Aynsley said lenders and bondholders to the Quinn companies would have to take a haircut on their investments. He said the family will no longer ‘milk dividends’ from their shares. Astonishingly, the Quinn family is still in debt for £2,5 billion and Mr Quinn’s companies owe £1,15 billion.
Mr Aynsley admitted. “There will no doubt be some level of write-off as we go forward.”
Both he and the Finance Minister declared their sympathy for the failed billionaire.
The bank chairman said: “It’s not a very good situation from a personal perspective.”
Mr Noonan said: “Seán Quinn made an enormous contribution to employment in the border counties, and at a personal level one would have to feel sorry for him.”
But he added: “Despite the contribution he made, he made a number of very serious mistakes.”
Kieran Wallace, of KPMG, was appointed share receiver. His role differs from other receivers in that he takes control of the shares, without interfereing with the day-to-day running of the business. – Daily Mail.