Family bid for Quinn Insurance not ruled out

It's understood the ambitious plan which, if successful, is the only way to keep the troubled firm in the Quinn family.

Sources say serious negotiations have been under way for a "considerable time" about a deal involving members of Sean Quinn's family and American investors.

It is believed several potential investors in the United States have been approached by representatives acting on behalf of the Quinn family regarding a takeover bid.

As speculation continued yesterday, Mr. Peter Quinn refused to rule out a family bid: "There isn't a move by the family at the minute but that's not to say there won't be any in the future." Since Quinn Insurance was placed into permanent administration three weeks ago, around 46 multinational companies are believed to have come forward wanting a slice of the Quinn pie. But the family are keen to retain control of Quinn Insurance, we're told. In fact, sources say that keeping the firm in the family has always been the case and that the plan has always been to have the business back within six weeks of entering permanent administration.

Three weeks in, the clock is ticking and according to a source close to the Quinn family the stakes have never been higher -- buying back the business could mean "risking everything".

"I know representatives are actively seeking investors from New York but before a takeover could be granted, the prospective buyers would need to ensure the administrators that not only could they afford to take over the business but that the balance of the business was efficient. Clearly at the moment it is not efficient which is why it went into administration in the first place. The Irish Regulator's requirements are also becoming evermore rigorous. It's a hell of an attempt, I have to take my hat off to them. They certainly have guts but I guess you can only go bankrupt once. My main concern is the future of jobs. I think this sort of deal could put even more jobs at risk," he said.

Furthermore, The Impartial Reporter has also been told that Sean Quinn's resignation last week from the Quinn Group came about as a result of those negotiations.

Mr. Quinn and his wife Patricia stood down from the board of Quinn Group Limited last Wednesday evening to avoid any "potential conflict of interest" associated with the sale of Quinn Insurance -- and now we know why.

The businessman also said his decision was based on his need to concentrate in the short term on family interests outside of the Quinn Group, in particular on the interaction of those interests with the troubled Anglo Irish Bank.

In a statement, Mr. Quinn said: "After 37 years of sustained development Quinn Group Limited has a mature, professional and skilled executive as well as a very experienced and independent Board. The Group is extremely well invested and is strongly positioned to meet all of the challenges ahead. The Group management and staff in all areas are second to none as has been demonstrated in recent times. For now I want to concentrate on Quinn family interests outside of the Group and bring all outstanding matters to a satisfactory conclusion in that regard." A spokesperson for Dublin administrators, Grant and Thornton, said yesterday: "The administrators are preparing a memorandum to go out to everyone and anyone who has expressed any interest in Quinn Insurance. Should the Quinn Group come to any decision about the sale of shares in Quinn Insurance Limited, the administrator would have to approve such a deal. It is possible that the Quinn Group may be going off to approach other people about their business. However, the administrator couldn't comment on anything like that. The memorandum will be sent out to the interested parties at the end of this month and that's when you may begin to see progress on the Quinn Limited side. The Quinn Group side is a completely different kettle of fish." Responding to today's story, a Quinn spokesperson simply said: "The Group have no comment to make on this." At the moment there is no price tag fixed to Quinn Insurance but it is thought to be "extremely high".

Enterprise Minister Arlene Foster, who along with Employment and Learning Minister, Sir Reg Empey will co-ordinate the Government's response to the situation at Quinn Insurance, says her Department are continually being made aware of any takeover proposals from prospective buyers and said a number of options were currently on the table.

The focus on finding a solution -- and quick -- she says, is her main priority.

The Minister met with the Irish Regulator in Dublin on Tuesday to discuss the crisis: "We had a very frank discussion about the options open to the Quinn Insurance," she said.

Last week, Mrs. Foster announced that Leslie Ross, who is originally from Enniskillen, will co-ordinate the activities of the Department of Enterprise, the Department for Employment and Learning (DEL), Invest Northern Ireland, InterTradeIreland and local councils in response to the problems facing Quinn Insurance.

Leslie Ross CB has extensive experience of economic development in Northern Ireland for nearly 30 years, having held a number of prominent posts within the industry. Following the creation of Invest Northern Ireland in April 2002 he was appointed Managing Director of its Business International group, a role which he held until his retirement from full time employment in 2005. He was awarded a CB in the Queen's New Year Honours List in 2006.

Mr. Ross was in Enniskillen yesterday to meet with Arlene Foster and staff at the Townhall, where he will be based for several weeks.

Speaking to The Impartial Reporter, Mr. Ross said he was ready to take on the challenge: "Yes, very much so. It's a job that needed to be started quickly. I will be looking, firstly, to acknowledge the importance of Quinn Insurance to the local economy and to reassure the work force that my team and I will be doing all that we can to secure the future of Quinn Insurance. We will be looking to see what we can do to help Quinn Insurance in its current state and to help those employees who will have to leave find alternative employment," he said.

Meanwhile on Monday, Independent councillor Gerry McHugh was thrown out of the Northern Ireland Assembly after criticising Stormont's handling of the problems at Quinn Insurance.

He was ruled out of order and proceedings were briefly suspended by Speaker William Hay after he kicked up a fuss following Assembly questions with Deputy Leader Martin McGuinness.

Speaking afterwards, Mr. McHugh said he felt Stormont had "let down" Quinn employees and "isn't doing enough".

And in a statement to this newspaper yesterday, Sinn Fein councillor Phil Flanagan described Mr. McHugh's outburst as "unproductive and childish".

"Perhaps, Mr. McHugh would be better served questioning his Fianna Fáil colleagues, particularly An Taoiseach, Brian Cowen, Brian Lenihan and Batte O'Keefe, to see what action they have taken to protect the jobs throughout the Quinn Group. This would be much more productive than criticising the Assembly. He is not trying to look after the interests of the workers of the Quinn Group, but merely trying to be seen to be doing something in the run up to the Assembly elections next year."