IBRC want to stop Quinn family litigation

A RENEWED bid has been made to prevent members of bankrupt businessman Sean Quinn's family litigating claims that the former Anglo Irish Bank unlawfully "shovelled" €2.34bn loans into Quinn companies.

The special liquidators of Irish Bank Resolution Corporation (IBRC), formerly Anglo, want the Supreme Court to overturn a High Court decision permitting Patricia Quinnand her five children to litigate claims Anglo advanced the loans for the unlawful purpose of propping up its share price.

 They claim Anglo illegally made loans from September 2007 to fund margin calls on contract for difference (CFDs) positions - which requires a seller to pay to a buyer the difference between the current value of an asset and its value at contract time.

The CFDs were built up by Sean Quinn senior in Anglo from 2005 through a Madeira-registered company, Bazzely, owned by the Quinn children.

The High Court also ruled the Quinns may litigate additional claims the loans breached the Market Abuse Regulations.

IBRC had argued the Quinns should not be allowed make those claims in their action denying liability for the €2.34bn loans.  But Mr Justice Peter Charleton, in February 2012, said it would be contrary to public policy to shut out the Quinns from responding to the "flagrant illegality" alleged against Anglo and Sean Quinn.

He ruled the family are entitled to advance claims they can avoid liability for loans if they prove those loans were made for "wholesale" market manipulation in breach of Irish and European law.

He added there may be a portion of "legitimate debt" involved, a reference to the bank's claim that €500m loans are unrelated to the allegedly unlawful loans.  That could result in a proper apportionment of legitimate and illegitimate debt at the end of this case if the Quinns proved their claims, he noted.