Terence Flanagan (Dublin North East, Fine Gael)
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Question 67: To ask the Minister for Finance his views on a matter (details supplied) regarding Anglo Irish Bank; and if he will make a statement on the matter. [23004/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware the Quinn Group and Quinn family are substantially indebted to Anglo Irish Bank Corporation Limited ('the bank') and by direct extension to the Irish taxpayer. The bank is obliged to take whatever steps are necessary to protect the bank's Quinn-related assets/investments from a diminution of value and the bank's involvement in a joint venture to acquire the Quinn Insurance Company or in the appointment of a share receiver to the wider Quinn Group must be considered in this context. The position is that the Quinn Insurance company was placed in administration on 29 March 2010 after concerns were raised by the Central Bank of Ireland about the firm's ability to meet its liabilities to its policyholders. Further, and quite separately, the bank has been instrumental in the appointment of a share receiver to the wider Quinn Group but has no direct involvement in the day to day running of the various companies in the Group.

In relation to the Quinn Insurance company, the bank is involved in a joint venture with Liberty Mutual to acquire the company. This involvement does not require the Bank to provide cash towards the purchase price, instead it involves the bank procuring the release of legal guarantees held by the relevant banks and bondholders in return for a carried interest in the company. This partial ownership approach is considered to be the best way to maximise the repayment of debt owed to the taxpayer. The appointment of a share receiver to the wider Quinn Group does not involve the acquisition of those companies by the bank or indeed any additional funding of these operations. The process of appointing a share receiver pursuant to relevant security documents entered into by Quinn related entities and persons with the bank is simply to protect the bank's interests.

The bank is actively involved in a myriad of litigation with the Quinn family in five jurisdictions in order to stop attempts to dissipate valuable property assets pending resolution of the primary proceedings in Dublin early next year.