By Peter O' Dwyer
O’Flynn Construction Group has reached an agreement for a “consensual resolution” to its ongoing dispute with the US private equity firm that briefly seized control of the group last year.
Last July, Blackstone Capital and its subsidiary, Carbon Finance, had an interim examiner appointed to four companies within the group headed by Cork property developer Michael O’Flynn and served demands on Michael and John O’Flynn for immediate payments of their debts.
The four companies were O’Flynn Construction Company; O’Flynn Construction BTC; O’Flynn Construction (Rochestown), and Eastgate Developments (Cork).
The O’Flynn Group was subsequently put back in control of the companies after Ms Justice Mary Irvine ruled in the High Court that Blackstone and Carbon Finance had not acted in good faith when it applied for interim examiners to be appointed to €1.4bn worth of loans.
Blackstone has today announced that following constructive engagement in recent weeks, Carbon Finance and O’Flynn Construction Group have concluded an outline agreement on a consensual basis.
Details of the agreement are being finalised and, to facilitate this, the standstill agreement in place between the two parties has been extended until February 13.