Quinn bondholders explore guarantee options in bid to satisfy regulator

BONDHOLDERS WHO have guarantees from Quinn Insurance yesterday continued exploring if the guarantees could be altered or lifted so as to satisfy the Financial Regulator there is no need for the appointment of administrators to the business, according to a source with knowledge of the matter.

However, it is understood that even if the Quinn Group and the bondholders were able to agree an arrangement that improved the solvency of Quinn Insurance, the Financial Regulator would still have strong reservations about allowing the business return to Quinn Group control.

The appointment of provisional administrators to Quinn Insurance is set to be confirmed at a hearing of the High Court next Monday.

A press release was issued yesterday by Mona Birmingham, a public relations representative with the Quinn Group, who said she was acting as a spokeswoman for the employees of the group, who had asked her to take on the role.

She said protests in Cavan and Dublin are being organised by employees for today as a response to the appointment of provisional liquidators to Quinn Insurance. She said the matter of whether those employees who attended the protests would suffer cuts in pay was “unfortunately” a matter for the provisional administrators.

“Since the shock decision made by the regulator on Tuesday 30th of March, we the employees of Quinn Insurance and Quinn Group have been increasingly concerned about the safety of our jobs. It is our understanding that the regulator was rash in his decision and approach, and as a result 5,500 employees who were 100 per cent secure in their jobs until that time are now facing an uncertain future.

“We are the largest Irish insurer, and in over 14 years of business we have supported Irish business and protected Irish jobs. We call on the Government now to show support to Quinn Insurance employees in protecting our jobs, as it has done in the past with the withdrawal of multinationals. Surely a home-grown business should receive the same support if not further support from its Government? The actions taken by the regulator could result in jobs/business and profits all leaving Ireland with non-Irish companies.

“We want to strenuously refute claims made in the media that the initiatives to date by Quinn employees are somehow driven by Seán or management. All our actions are taken by us as employees, with the sole purpose of saving our jobs.”