€2.5m judgment sought against Denis O’Flynn

A Nama associated company is to seek an order for a €2.5m judgment in the Commercial Court against businessman Denis O’Flynn of the Cork construction O’Flynn family dynasty.

The money relates to guarantees entered into by Mr O’Flynn with AIB in relation to a company Ramisen Ltd, which received loans to purchase lands in Co Cork.

Mr Justice Brian McGovern adjourned the case for two weeks after admitting the case to the Commercial Court list yesterday and after he was told discussions are taking place between the sides.

The National Asset Loan Management Ltd (NALM) is seeking an order for judgment to the sum of €2.5m against Mr O’Flynn, of Carhue, Coachford, Co Cork.

The money, the company claims, is due on foot of guarantees in respect of facilities granted by AIB to Ramisen Ltd, of Vicars Road, Cork towards the purchase of lands in Co Cork.

Ramisen Ltd’s indebtedness to National Asset Loan Management as of July this year totalled over €11.3m. NALM demanded that money be paid on July 28 this year, and says it has not been paid.

As a result, it says the €2.5m under the guarantees is now due. Mr O’Flynn’s personal indebtedness, under the guarantees, is limited to €2.5m.

In an affidavit, National Asset Loan Management said in addition it demanded repayment of a debt of €71.2m and in the absence of payment of that debt joint statutory receivers were appointed in respect of certain assets of the O’Brien and O’Flynn house building company, and the High Court appointed joint provisional liquidators to the company.

NALM said the winding up petition was strongly resisted by O’Brien and O’Flynn and after a contested court hearing the High Court made an order winding up the firm in September.

NALM said it is now seeking judgment against Mr O’Flynn in order to protect and mitigate its position and it is concerned its ability to recover debts will deteriorate should it delay in pursuing the matter.

The O’Brien and O’Flynn house building firm headed by Denis and Dan O’Flynn has built across the greater Cork area since 1976, with up to 4,000 homes constructed.