The Financial Regulator Matthew Elderfield last night asserted the independence of his office in the face of political pressure over his decision to place Quinn Insurance in the hands of provisional administrators.
Mr Elderfield met a delegation of Border county TDs and Senators for two hours last night. The delegation had earlier met the provisional administrators in Cavan. It followed protests, attended by thousands of Quinn Group employees and supporters, in Dublin and Cavan.
Employees at Quinn Insurance will be briefed today following last night's meeting.
Members of the delegation said Mr Elderfield had been open to their arguments but had stressed his independence and said he was restricted in the information he could share with them. He also informed the group that the High Court hearing to confirm the appointment of the administrators will go ahead next week.
Earlier yesterday, Minister for Agriculture Brendan Smith was part of the delegation that met the provisional administrators in Cavan. However, he absented himself from the meeting with the Financial Regulator. Government sources indicated that was to avoid any perceived conflict of interest on the part of a Cabinet member.
The spokesman for Taoiseach Brian Cowen said yesterday there was no conflict between the action initiated by the regulator and the initiative of Mr Cowen in arranging a meeting between Enterprise Ireland and the Quinn Group on Easter Sunday, following his telephone call with group founder Seán Quinn.
“There was never any question but that the regulator would remain independent in relation to Quinn Insurance. There was concern about jobs in the wider Quinn Group. That is why the Taoiseach asked senior management in Enterprise Ireland to meet Mr Quinn,” he said.
Cavan-Monaghan TD Dr Rory O’Hanlon said he had a “constitutional obligation” to represent his constituents. He said the political delegation “got a good hearing”, adding the regulator was open to suggestions as to how the difficulties could be resolved. He strongly denied the meeting amounted to political interference in the regulator’s role.
Talks between the Quinn Group and the lenders to the business and the Quinn family will continue today in an attempt to agree an alternative plan to avoid the confirmation of joint administrators to Quinn Insurance in the High Court next Monday.
The discussions are focused on how best to protect the repayment of loans totalling €4 billion from the group and to retain the greatest value in a restructuring of the business. The situation was described as being “delicately balanced” by well-placed sources as the various lenders seek an agreement which would allay the regulators concerns over the solvency of Quinn Insurance and corporate governance issues at the firm. This may lead to a change of ownership and management.
Discussions have been complicated by the complex structure of the Quinn Group and the ranking of the syndicate of banks and bondholders, led by UK bank Barclays, ahead of Anglo Irish Bank in relation to the loan security over the groups assets.
The banks and bondholders are owed a total of €1.2 billion, while Anglo is owed €2.8 billion by the Quinn family which is secured on the family's shares in the Quinn Group and the familys property portfolio.
