Quinn says it needs €100m to €150m to restore solvency position
Quinn Group has dismissed speculation that Quinn Insurance, currently in provisional administration, needs a €700m cash injection.
The company, owned by Sean Quinn, released a statement reacting to a proposal put to the Irish Financial Regulator by Anglo Irish Bank to invest €700m as part of a restructuring package.
Anglo - which is owed €2.8bn by the Quinn Group - plans to invest €150m into Quinn Insurance – and use €550m to pay off bondholders.
Quinn Insurance estimated that its needs a cash injection of between €100m and €150m to restore its solvency position.
Quinn said it cannot comment on Anglo Irish Bank's plans to refinance some of the groups debt, but said a refinancing would not increase the amount of debt within the group, but may improve Anglo’s ranking in the debt structure.
"There is therefore no basis for the €700m deficit figure which is in circulation," the company said in a statement. "Both QIL and the group are highly liquid, QIL has over €800m of cash available, Quinn Group has cash reserves of €70m and the Group generated cash profits of circa €47m in the first quarter of 2010."
The provisional administrators today presented a report of their findings to the Financial Regulator in preparation for Quinn's challenge to the administration order in the High Court on Monday.
Download the full statement, right.
- Word, Size 28 kb