Separate statements late yesterday from Quinn Industrial Holdings Ltd (QIHL) and Sean Quinn, the former owner of many of its business assets, announced that Mr Quinn and his son, Sean Junior are to step down from their positions there.

In a note to its near 750 employees yesterday QIHL said that it had been mutually agreed that its €500,000 per-year consultancy arrangement with Mr Quinn and the separate contract with his son would be "discontinued."

"As time has progressed it has become evident that Sean’s expectations for his role and the ownership structure of QIHL are at odds with the strategic direction of the businesses," the company said.

The announcement comes just a month after Mr Quinn senior said he had been treated in a "deplorable manner" by his former colleagues who now manage QIHL and the American investors who bought the former Quinn Group’s construction and packaging assets two years ago

Against a backdrop of intimidation and threats against QIHL management and contractors, which Mr Quinn condemned, it’s understood Mr Quinn believed his consultancy represented a means of regaining control of parts of the business.

He will retain an office on the QIHL site as part of this agreement.