Breaches of company rules could lead to criminal charges
The Irish Financial Regulator could hand a file on Quinn Insurance’s breaches of insurance regulations and company law to the Office of the Director of Corporate Enforcement and the Garda Síochána (Irish police), the Irish Times reports.
The regulator is examining breaches of solvency rules and the conduct of individuals in failing to disclose them.
The regulator will consult lawyers next week on whether it needs fresh evidence to refer matters to other State bodies for further investigation or potential action.
Anglo Irish Bank, which is owed €2.8bn by the Quinn family, has proposed to the regulator that it indemnify Quinn Insurance.
It would also take on some of the Quinn Group’s debts to stop Quinn Insurance going bust and keep the group intact, as it fears the rump would be unable to service the debt.
Anglo would buy the group’s €600m debt to its US bondholders at a discount, issuing them with about €550m in new, government-backed bonds. The bank would also inject €150 million into the group to allow Quinn Insurance improve its solvency.
This would bring the cost of Anglo’s proposed bailout to about €700m and increase its exposure to Quinn to about €3.5bn.