O’Brien and O’Flynn Ltd to be closed with €71m debt

The debt-ridden Cork building contracting firm of O’Brien and O’Flynn Ltd is to be wound up by order of the High Court.

Mr Justice Kevin Cross appointed insolvency practitioners John McStay and Tom Rogers as official liquidators to the company which owes Nama €71m.

He told Aidan Redmond, counsel for the National Assets Loan Management Ltd, an arm of Nama, that he was satisfied the winding up of the company was necessary and appropriate.

Stephen Byrne, counsel for Mr McStay and Mr Rogers, had told the court his clients had been appointed provisional liquidators to the company on July 30.

Andrew Sexton, counsel for the company, told the court that brothers Dan and Denis O’Flynn, directors of the company, had been interacting for several years with Nalm until the agency had decided to withhold funding, and present a petition to the court for the appointment of provisional liquidators.

The company’s owners, Dan and Denis O’Flynn, are members of the greater O’Flynn family dynasty, including Michael and John, whose separate construction companies were recently granted a High Court order removing from them an interim examiner and receivers appointed by Blackstone subsidiary, Carbon Finance.

O’Brien and O’Flynn Ltd owed Nama €71m and had assets worth less than half that amount. The debt had arisen after Nama had taken over loans advanced to the company by Bank of Ireland and AIB between 2008 and 2010.

Mr Justice Cross was told the company was insolvent on both a balance sheet and on a cash flow basis. A demand for repayment of the loans had been made in July but had not been satisfied.

He heard the appointment of liquidators would not just be in the interests of the taxpayer and Nama but also creditors of the company.

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