Belfast Telegraph

Administrators to take ex-Quinn Insurance auditors to court

BY TIM HEALY

The administrators of Quinn Insurance – once part of the empire of bankrupt Fermanagh businessman Sean Quinn – are taking steps aimed at securing an urgent hearing of their action against the company's former auditors.

The action by Michael McAteer and Paul McCann of Grant Thornton will allege professional negligence against PricewaterhouseCoopers (PwC) in relation to guarantees given by Quinn Insurance over loans to bankrupt Mr Quinn and his family which allegedly resulted in its collapse.

It is also over issues concerning the adequacy of the company's reserves.

The President of Dublin's High Court, Mr Justice Nicholas Kearns, was yesterday told by Bernard Dunleavy, for the joint administrators, they intended to proceed with their action.

A summons issued against PwC last February had been renewed, would be served soon and his side would then apply to the Commercial Court to have the action fast-tracked.

The Republic's Minister for Finance had been informed of the administrators' intentions and had raised no objection to the proposed course of action, counsel added.

The collapse of Quinn Insurance is expected to result in some €1.6bn (£1.4bn) public money being drawn down from the Irish State-backed Insurance Compensation Fund, which has lead to the Government imposing a 2% levy on various insurance policies.

Mr Justice Kearns, having been updated on the proposed action, said he was happy the administrators should proceed as proposed.

Belfast Telegraph

Popular