Court approves Quinn sale

Ireland’s High Court has approved the sale of Quinn Insurance to a joint venture of US insurer Liberty Mutual and Anglo Irish Bank.

The Irish Times has reported the court’s decision means a total €738m of public money will be paid out of the State’s Insurance Compensation Fund to the insurer.

This includes an immediate payment of €320m to facilitate the sale with the remainder later, subject to applications to the court.

A representative of the insurer’s employees told he court the vast majority supported the sale because they believe it will safeguard their livelihoods.

Two groups representing a number of Quinn policyholders and others had expressed several concerns about the proposed deal and claimed it involved an unfair distribution of public resources.

Both groups - Concerned Irish Citizens (CIC) and Concerned Irish Business (CIB) - also argued the High Court had not been given enough information about the deal to make an informed decision. They also indicated they had been supportive of alternative proposals for the insurer advanced by Quinn interests.

Solicitor David Baxter representing the Quinn Group Ltd told the court the group wished to make clear it was fully supportive of the sale proposals of the administrators and was not involved in the alternative proposals.

Denis McDonald SC, for the administators, said no alternative to the sale had been advanced by the objectors. The alternative to the sale was liquidation of Quinn Insurance Ltd, with 1,600 job losses and a deficit of up to €1.3bn, he said. It was “fanciful” to suggest another buyer could be found, he added.