Quinn Group in call for GBP35m working capital

Quinn Group in call for GBP35m working capital
Published: 01 August 2011

Quinn Group, the Northern Ireland-registered company encompassing cement, plastics, glass and radiators operating businesses, is seeking additional funds from banks and bondholders, writes Aine Coffey in The Sunday Times.

Sources said the group’s management has requested GBP35m from its lenders to finance its working capital needs, which exceed what was previously calculated.

However, the company said only that "there is no change in the financing arrangements that were announced back in April as part of the refinancing of the group".

In the restructuring of the Quinn Group in April, Anglo Irish Bank appointed Kieran Wallace of KPMG as share receiver to Quinn Group ROI, the top company in the organisation. The manufacturing operating businesses are controlled by Quinn Group, which is a subsidiary of Quinn Group ROI.

As part of the restructuring, the banks and bondholders released their guarantees over some subsidiaries of Quinn Insurance to facilitate its sale.

Guarantees over the manufacturing businesses were also lifted.

In exchange, it was agreed that the bondholders would receive a GBP175m payment, about GBP70m of which would then be injected into the manufacturing businesses.

The working capital would act as a bridging facility for these funds, it is understood.

The financial restructuring will come into effect on the sale of Quinn Insurance. Its disposal to a venture between Anglo and Liberty Mutual, the US insurer, was announced in April with the deal due to close in October.

A five-year investment plan for the group included a provision for the banks and bondholders to receive a 25% equity stake in the manufacturing group, which employs more than 6000 people.