Developer Michael O'Flynn 'fully vindicated' by High Court judgement on neighbour's insolvency 

Mr O’Flynn objected to the personal insolvency arrangement of John O'Driscoll coming into effect

Michael O'Flynn said the court had accepted his view that 'Mr O'Driscoll had realisable assets which were more than sufficient to meet his debts as set out in his own financial statement.' File picture

Developer Michael O’Flynn says he has been “fully vindicated” by a High Court judgement in his objection to the personal insolvency arrangement of his former business partner and neighbour John O’Driscoll.

Judgement had been reserved in the case taken by Mr O’Flynn since last February. 

He claimed that Mr O’Driscoll, from Kilcrea, Ovens, Co Cork, owed him approximately €950,000 and was not insolvent when he was granted a personal insolvency arrangement through the courts. 

Mr O’Flynn objected to the personal insolvency arrangement coming into effect. In a ruling published on Friday, Ms Justice Nessa Carroll upheld Mr O’Flynn’s objection.

The High Court had previously heard that the debt owed to Mr O’Flynn followed a €2.2m personal guarantee given to him concerning liabilities of pub operator Ezeon Entertainment Ltd, a company established by Mr O’Driscoll.

A co-guarantor on the loan agreement was former Irish rugby player Ronan O’Gara.

The debt was listed as a contingent liability in Mr O’Driscoll’s personal insolvency arrangement and was given a nominal value of €1.

In a ruling published on Friday, Ms Justice Nessa Carroll said: “There was no evidence provided by Mr O’Driscoll in these proceedings. He has obtained the benefit of a statutory regime that was put in place to create breathing space and relief for distressed insolvent debtors, with a particular focus on seeking to protect family homes and participation in economic life.” 

She also said: “There was simply no evidence as to any impediments to the sale of any of the assets or interests mentioned in the PFS (prescribed financial statement) or any reason to apprehend that they could not be easily and quickly realised.” 

In upholding Mr O’Flynn’s objection, she said: “This has the consequence that the 'Personal Insolvency Arrangement procedure shall be deemed to have come to an end’ (section 114(3)) and Mr O’Driscoll is now liable in full for debts which would otherwise have been covered by the arrangement.” 

Following the ruling, Mr O’Flynn said he felt "fully vindicated" by the decision.

He said the court had accepted his view that "Mr O'Driscoll had realisable assets which were more than sufficient to meet his debts as set out in his own financial statement."

He added: “Fundamental to me has been the issue of faith and trust in the personal insolvency system. Today’s Court decision is a critical outcome in that regard.” 

Ms Justice Carroll has adjourned the case for mention to October 12, during which “the parties can then propose directions for any further hearing as to costs or final orders that may be required”.