Seán Quinn and the Quinn family will no longer have any role in the management or ownership of the Quinn Group following a move by Anglo Irish Bank this morning.
The bank has announced the appointment of a share receiver to take control of the Quinn family's stake in Quinn Group (ROI) Ltd. This company is the ultimate parent company of the Quinn Group.
The share receiver, Kieran Wallace of KPMG, has appointed a number of non-executive directors to the board of the Quinn Group (ROI).
Anglo Irish Bank is owed €2.88 billion by Seán Quinn and his family, while other lenders to the Quinn Group are owed almost €1.3 billion.
The Minister for Finance said there was 'little prospect' of recovering money personally owed to the Quinn group of companies by the Quinn family, and that the cost of this would be picked up by Irish and European taxpayers.
Speaking on 6.1 News, Michael Noonan said the purpose of today's move at the Quinn Group was to protect the workforce. He said a return to growth in the economy could see other debts to the Quinn Group being dealt with.
A five-year restructuring plan has been agreed between Anglo and the Quinn Group's lenders, aimed at stabilising the businesses, which are described as 'fundamentally good and profitable'.
A statement from Seán Quinn and his family said they were considering today's announcement and would not be commenting today.
A share receiver is not the same as a traditional company receivership, as he will take control of the shares only, and not the assets, businesses or employees of the Quinn Group. His appointment will not affect employment or day-to-day business at the group, and a share receiver does not usually sell assets or parts of the group.
The Quinn Group has 2,600 employees, 1,000 in Ireland, and operates a number of businesses including cement, plastics, glass and radiators. The share receiver has also been appointed to the Quinn family's international property group.
Anglo Irish Bank chief executive Mike Aynsley said the bank was owed an enormous amount of money by the Quinns, which they were not in a position to repay. He said the bank had taken an approach which protected the businesses and paved the way for maximising the repayment of debt to the taxpayer over time.
Mr Aynsley said part of the plan involved the lenders to Quinn Group taking some losses. He also told RTE radio there would be 'some write-off' of the debt owed by the Quinns.
Quinn Group chairman Pat O'Neill said the financial restructuring was essential for the survival of the business, and more than 2,600 jobs would be protected.
Meanwhile, it was announced today that Paul O'Brien has been appointed as the new chief executive of the Quinn Group, taking over from Liam McCaffrey.
Mr O'Brien is currently a non-executive director of Quinn Group after joining the board in November 2010.
