Counsel for O’Flynns disputes Carbon claims

Counsel for O’Flynn Construction companies disputed claims by the Blackstone-owned company, Carbon, in its petition to appoint an examiner, that it had not received co-operation from the O’Flynns and had no access to the necessary financial information.

Carbon had access to the bulk of the necessary information.

Michael Cush, SC, for the O’Flynns, disputed claims by Carbon, when it applied to the High Court, asserting it was unable to provide an Independent Accountants Report — as normally provided when examinership is sought — because it had not received co-operation from the O’Flynns and had no access to the necessary financial information.

Carbon had access to the bulk of the necessary information, including management accounts up to June 2014, and could have asked for any additional information required, he said. An IAR could also only have expressed the view the companies had a reasonable prospect of survival.

The four affected companies are O’Flynn Construction Company, employing 16 people; O’Flynn Construction BTC; O’Flynn Construction (Roches-town), and Eastgate Developments (Cork).

He said that the four companies placed under court protection had debts of some €700m and had also provided guarantees over the €1.8bn liabilities of the entire group.

The petition was brought when there was no default on the companies’ loans and when Carbon was aware of, but had not disclosed to the High Court, a legitimate dispute with his side concerning the proper construction of the facilities bought by it from Nama.

The petition by Carbon was brought without notice to the directors, shareholders and management of the four companies in the “certain knowledge,” had notice been given, it would be opposed.