Anglo Irish Bank will reportedly wait at least five years before selling the core elements of Sean Quinn“s manufacturing empire, after the dramatic takeover of Quinn“s cement, radiator and glass bus…
Anglo Irish Bank will reportedly wait at least five years before selling the core elements of Sean Quinn“s manufacturing empire, after the dramatic takeover of Quinn“s cement, radiator and glass business on 14 April. The effective ownership of the new manufacturing company will be 75% Anglo and 25% other Quinn Group lenders. The Quinn Group released a statement stressed in which it said that all 2,600 jobs would be protected under the new structure. Anglo, which is prepared to invest a significant amount of cash in the manufacturing jobs, may create additional jobs over time. The new company will have about EUR 760 million of debt and pre-tax earnings of about EUR 100 million. Major sales, either through a flotation or trade sale, will not be considered for five years. “There“s an agreement . . . that the glass company will not be sold off for five years,” Finance Minister Michael Noonan confirmed, adding that: “Other elements of the company cannot be sold unless certain prices are achieved.” Noonan also said this meant there was now “potential to build up value in these companies”. “That“s good for the Irish taxpayer because when (the stake) . . . is sold, that will help pay off the debts,” he added. Anglo is taking control of the manufacturing group as part of a bid to secure repayment of some EUR 2.88 billion owed by Quinn Group founder Sean Quinn, and will also have to share any proceeds it recovers from the Quinn Group with the group“s own lenders, who are owed EUR 1.3 billion in total, including hedge funds and international banks. As per a deal with Anglo Irish Bank, only EUR 760 million of that figure will be owned by the manufacturing business, while the rest is being shifted over to the other parts of Quinn Group. This figure of approximately EUR 500 million is still owned but will be paid back out of asset disposals. “It is in the interest of the bank that the businesses in the group are healthy, well invested, have the capacity to develop profits,” Anglo boss Mike Aynsley said. “This in turn secures jobs. We have taken an approach, which protects these businesses, putting them on a sound financial footing. They will run by the directors on a “business as usual“ basis. This, ultimately, paves the way for maximising the repayment of debt to the taxpayer over time.”