Former Quinn Group CEO gives evidence at Anglo exec trial
Thursday, 6th February, 2014 6:21pm
Jump to comments
Jump to comments
The trial of three former Anglo Irish Bank executives has been hearing about an angry conference call which took place between Ballyconnell businessman Sean Quinn and former Anglo CEO, David Drumm, in July 2008.
Liam McCaffrey, the former CEO of the Quinn group at the time gave evidence at the trial in Dublin, which started on Tuesday, that Mr Quinn was “reluctant” to give in to pressure directed at him by Anglo hierarchy to dispose of the large stake he had amounted in the bank.
The jury heard that Mr Quinn had admired Anglo Irish Bank, like he had Michael O'Leary of Ryanair when he invested in that company previously, and as a result of deal through Contracts for Diffferences he secretly began to start building up a stake in the bank from around 2006 onwards.
By September 2007 Mr Quinn had amassed a 24% interest in the bank though CFD's, a significant holding that Mr McCaffrey said was a cause of concern and surprise to Chairman of the by now troubled Anglo, Sean FitzPatrick.
Mr McCaffrey told the court in evidence that at a meeting in former Quinn owned hotel, Buswells on Easter Monday 2008, Mr Quinn had initially refused to dilute his stake in the bank still believing that Anglo’s tumbling share price would show signs of recovery as it had done in the past.
However, he was informed by Anglo bosses that he would have to borrow hundreds of millions from Anglo if he were to be able to meet his losses made on his CFD shareholding. Despite his reservations, Mr Quinn was eventually convinced to follow thorough with this, 50 per cent of the shares to be bought by members of the Quinn family with assurances then given the remaining 50 per cent would be bought by other parties.
Mr McCaffrey described in court what he said was “an angry” conference call on July 14, 2008 where either Anglo CEO David Drumm walked out or Mr Quinn hung up on the call.
Former Anglo executives Sean FitzPatrick, Pat Whelan and Willie McAteer deny providing unlawful financial assistance to the so-called 'Maple ten' and to Mr Quinn’s family to purchase shares at the failing bank.
The jury has heard that Mr Quinn himself will give evidence tomorrow.
No comments:
Post a Comment