Michael O'Flynn, one of Ireland's largest real estate developers, has scored an initial victory in his fight to stop US private equity firm Blackstone gaining control of his property empire.
Michael O'Flynn, one of Ireland's largest real estate developers, has scored an initial victory in his fight to stop US private equity firm Blackstone gaining control of his property empire.
The High Court in Dublin on Wednesday granted O'Flynn's application to remove an interim examiner to several of his companies, and to re-appoint the original directors, including Cork-born O'Flynn and his brother John.
Carbon Finance, a Blackstone subsidiary, bought Project Tower, loans with a face value of €1.8 bn relating to O'Flynn's businesses, from Irish bad bank NAMA for a reported €1.1 bn in May. Two months later Carbon Finance sought the appointment of the interim examiner and the removal of the directors of companies which form part of O'Flynn Construction Group, claiming O'Flynn was insolvent and uncooperative in relation to servicing of the debt, including a €25 mln personal loan.
His companies have developed industrial, office, retail, leisure, hotel and residential properties across Ireland, the UK and Continental Europe. The group's 17-storey Elysian residential tower is the tallest building in the Irish city of Cork.
O'Flynn argued in court that he was co-operating as he had done with NAMA for four years, and was in a position to repay the personal loan by Friday 15 August.
In her judgement, reported by the Irish Independent, Ms Justice Irvine stated that Carbon Finance had not acted in the 'utmost good faith' and had not fully disclosed all relevant information to the court hearing on 29 July when the interim examiner was appointed.
Carbon had claimed in July that there was a ´lack of access' to substantive financial information and a lack of co-operation from the O'Flynn Group.
'This characterisation was not an accurate presentation of the circumstances,' Ms Justice Irvine said. The judge noted that Carbon had access to ´significant financial information´ before it bought the O'Flynn loans from NAMA.
APPEAL
Carbon Finance can appeal the judgement. O'Flynn said after the court decision that he would continue to work with Carbon Finance as best he could, the Irish Independent reported.
Carbon Finance said afterwards that it 'notes' the ruling and 'continues to believe that all steps taken in the current proceedings were necessary and appropriate in the circumstances and is pleased to note Michael O'Flynn's decision to make an immediate repayment of his personal loans, which it looks forward to receiving.
'Carbon will continue to safeguard its position as a significant creditor of the O'Flynn Group and to do everything to protect the assets of the group and its creditors.'