IBRC 'shocked' at Kiev shopping centre ruling

THE IRISH Bank Resolution Corporation (formerly Anglo Irish Bank) has suffered another setback in its efforts to seize a $60 million Ukrainian shopping centre formerly owned by the family of Seán Quinn.

A spokesman for the State-owned bank said it was “shocked” by the decision of the Kiev City Commercial Appeals Court, which could see the shopping centre falling into the possession of parties whose identities are not known. Last December a British Virgin Islands company, Lyndhurst Development Trading, told the Kiev courts it was owed $45.2 million by Univermag. The courts have accepted the claim despite the objections of IBRC.

The Kiev shopping centre produced rent of $10 million in 2010 and is said to be worth up to $60 million. It is owned by a Ukrainian company, Univermag, which was formerly owned by Mr Quinn’s family. IBRC has had a share receiver appointed to the Swedish company through which the family’s interest in Univermag was held, but it has not as yet managed to seize the actual shopping centre.

When it appointed a new manager over Univermag, the security guards at the shopping centre refused to allow him access to the company’s offices. The bank was given charges on the property, and the companies through which it is owned, when Anglo Irish Bank issued loans to the Quinn family some years ago, loans which remain unpaid.IBRC now fears that Lyndhurst will assert its claim over Univermag, which will be declared bankrupt leaving Lyndhurst to seize its asset – the shopping centre. IBRC’s appeal against the decision to recognise the Lyndhurst claim was rejected despite the fact that the court was told that Peter Quinn, a nephew of Seán Quinn, had sworn an affidavit saying his signature on a crucial document in the case was a forgery.

Peter Quinn’s signature appears on a document that purportedly assigns rights a Northern Ireland company, Innishmore, had in the debt, to the British Virgin Islands.

The interest in the debt was originally held by a Northern Ireland company, Demesne Investments, Derrylin, Co Fermanagh, of which Seán Quinn is a former director.

The company’s interest in the debt was transferred to Innishmore Consultancy, Enniskillen, Co Fermanagh, last year, the courts in Belfast have been told. The interest was then transformed on to Lyndhurst. The Belfast court heard of a supplementary loan agreement dated April 2011, between Demesne, Innishmore Consultancy and Univermag, an October 2011 agreement between Innishmore and Lyndhurst, and a November 2011 supplementary loan agreement between Innishmore, Lyndhurst and Univermag. Peter Quinn is a shareholder in Innishmore.

The bank has secured an order from the Belfast courts preventing Lyndhurst from dealing or trading in the debt in any way. The bank has also launched proceedings in the British Virgin Islands to establish who owns Lyndhurst.