O’Flynn companies start fight to remove interim examiner
The case to overturn the appointment of an interim examiner will go ahead in the High Court next week. The Cork companies are alleging “huge” non-disclosure of key facts and improper purpose when interim examinership was sought earlier this week by a company of US investment giant Blackstone.
What was really at the heart of the petition was to “remove” his clients, Michael Cush, counsel for the Cork companies, told Mr Justice Peter Kelly.
Mr Cush yesterday secured permission from the High Court to serve short notice of the application to overturn the appointment of an interim examiner, to be heard on Tuesday. Counsel also secured permission to serve short notice of separate, but related proceedings, in which brothers Michael and John O’Flynn, the principal shareholders in the companies, are challenging demands made on them last Tuesday for repayment “forthwith” of some €20m personal loans.
The O’Flynns claim their loans are not in default, they were given no reasonable time to repay, and the repayment demands, accompanied by an appointment of receivers, are part of an alleged strategy to take over their companies.
Mr Justice Peter Kelly said he was satisfied counsel had raised an arguable case entitling him to short service and he returned both sets of proceedings to Tuesday next.
Earlier, in asking for an urgent hearing, Mr Cush said the appointment of an interim examiner had already had serious consequences for his clients.
People had arrived at offices in Ireland and Britain to find new directors of companies had been put in place, he said.
Blackstone’s affiliate, Carbon Finance, had appointed receivers, passed a resolution removing all directors of the four companies, served demands for payment of the loans and applied without notice to his side for court protection and appointment of an interim examiner last Tuesday, he said.
