Following weekend news that Quinn Insurance has suffered a sharp fall in business, Sean Quinn has warned that thousands of jobs are at risk in his former companies.
In a statement Sean Quinn alleges that 38 years of his hard work to build the Quinn Group has been destroyed by Anglo Irish Bank in less than five months.
Sean Quinn claims the ‘deal’ agreed by Anglo Irish Bank with the banks and bondholders has seen the Quinn Group’s interest payments soar by over 300% to about €100m a year.
Mr Quinn said the Finance Minister appears to have been “seriously misled” last April when he stated that the Anglo deal involved a substantial writedown of the group’s €1.27 billion debt. He said there has been no write-down whatsoever of debt due to the international banks and bondholders of the Quinn Group. “The reality is that the debt has simply been re-assigned to various Quinn Group companies,” he stated.
He concluded, “It is absolutely apparent that Anglo’s priority is to pursue a vendetta against me and my children – while totally ignoring its obligations to the Irish taxpayer, the Group and its employees. The reality now is that thousands of jobs are at risk.”
But Anglo Irish Bank were quick to dismiss the claims made by the founder of the Quinn Group, commenting they “strenuously objected” to the allegations.
The nationalised bank disputes that the Minister for Finance Michael Noonan was misled in relation to Anglo’s deal to take control of Quinn manufacturing group. In a statement the bank said Quinn’s claims were “blatantly incorrect” and “misleading”.
The bank blamed Mr Quinn’s “reckless gambling” for the troubles in the Quinn Group.
Anglo said his statement was designed to destabilise the workforce. The bank said it had worked tirelessly with other creditors to ensure a socially responsible outcome.
It said the restructuring of the Quinn Group debt has been designed to reduce the debt burden of the Quinn manufacturing group to a sustainable level.
The manufacturing business is to have its debt to banks and bondholder reduced from €1.28bn to€682m.
Anglo said it was not pursuing a vendetta against Quinn, rather it was trying to defend the security of its position from attempts by members of the Quinn family to place certain assets beyond reach of the bank and therefore the taxpayer.