Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 86: To ask the Minister for Finance his views on a matter (details supplied) in relation to the Quinn Group. [20672/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy should note that the Joint Administrators have indicated to my Department that no proposal was received from the Quinn family until the 5/4/2011 nearly 6 months after the deadline for expressions of interest. The Joint Administrators responded to the family on the 11/4/2011 setting out their concerns surrounding their proposal. They say that the proposal was highly conditional in nature as it depended on amongst other things on the State intervening to facilitate the transfer of €2.8bn of debt from Anglo to one of the viable banks and to require that bank to provide a further €500m loan to the Quinn Group, as well as agreement with the bondholders. As such they saw no likelihood for such a proposal being facilitated in the current economic climate, as the taking on of such loans by other banks was likely to compound their already difficult position and in addition would also be likely to contravene European State Aid rules. They were also of the view that reaching agreement with the bondholders in relation to the releasing of the guarantees over QIL assets was going to be extremely difficult if not close to impossible.

On the question of the NTMA assessment of the Quinn proposal, it should be noted that NTMA reviewed the proposal and concluded that the assumptions within the proposal were significantly more optimistic than the Anglo base case. However, they make the point that the assessment of the bids was the business of the Joint Administrators. The NTMA role was confined to assessing and approving any proposal by Anglo to acquire the Quinn Insurance business from the Joint Administrators. The assessment and approval was conducted solely on the basis of the commercial terms of any proposed acquisition by Anglo of the Quinn Insurance business. They say their role did not extend to, nor were they mandated to, assess any bids from any other party for the Quinn Insurance business, as this was a matter for the Joint Administrators.