Wednesday, August 13 10:13:17
Michael O'Flynn, one of the most prolific property developers Ireland has ever produced, today said that he has the funds to repay loans now controlled by US equity group, Blackstone.
In a statement to BusinessWorld.ie, Mr Flynn said that he has funds available not only to immediately repay the loans in respect of which demands were served on him recently (in the amount of E16.7m) but also to repay all of his personal loans with Blackstone's Carbon Finance Limited. This amounts to just under E25m.
Mr O'Flynn is taking legal action against Blackstone to prevent an examiner being appointed to some of his companies.
In his statement, Mr O'flynn said: "Carbon Finance Limited had sought to appoint receivers over some of Mr. O'Flynn's properties when they deemed that he was not in a position to repay his personal loans and had followed this with a series of steps in reliance on the alleged failure to meet the demand. Carbon Finance Limited presented Mr. O'Flynn with the demand for repayment of his personal loans on Tuesday 29 July, and followed up in a matter of hours with a series of steps including the appointment of Receivers over the assets of a number of O'Flynn Group companies. They also presented a petition to the High Court to appoint an interim examiner to four of the O'Flynn Group's Irish trading companies. Carbon openly admitted in the court proceedings that service of the personal demands was undoubtedly designed to bring about an event of default on the corporate facilities."
He added that on 29th July the High Court granted an ex parte application by Carbon for the appointment of an interim examiner which O'Flynn Group is now seeking to have removed on the basis that Carbon Finance Limited failed to disclose all material matters to the court in its application.
"These included, for example, the fact that the companies were up to date in all their payment obligations, had significant cash on hand, had been cooperating with Carbon and supplying it with financial information and that there existed a number of disputes about how the loan facilities were now being operated by Carbon as compared to NAMA. Michael O'Flynn is also applying for an order to the effect that the demands in relation to his personal loans (which were being fully serviced) in this case were unlawful and that, as a consequence, the steps that followed were also invalid," he said.
"The O'Flynn Group of companies have been in business for 36 years, including successfully navigating and exiting the NAMA scheme in May of this year when Carbon purchased its loans."