The O'Flynn construction group's challenge to the appointment of an interim examiner to its business will take two days, the High Court was told this morning.
Four key companies in the Cork-based group seek to overturn a decision of the High Court last week granting an application by Carbon Finance Ltd, a company in the US investment giant Blackstone, to appoint the interim examiner.
Michael Cush SC for Michael and John O’ Flynn and their companies, has described the appointment as part of an improper attempt to take over the O’Flynn group.
Mr Justice Brian McGovern last week granted court protection to the four companies concerned, O’Flynn Construction Company; O’Flynn Construction BTC; O’Flynn Construction (Rochestown) and Eastgate Developments (Cork).
He appointed Michael McAteer of Grant Thornton as interim examiner and directed that an Interim Accountants Report be prepared by Kieran Wallace of KPMG.
Mr Cush today told Ms Justice Mary Irvine, the duty vacation judge, that counsel were awaiting the provision of a number of affidavits grounding the challenge to the interim examiner's appointement.
Mr Eoin McCullough, SC, counsel for Carbon Finance Ltd, said he would be providing the court with a replying affidavit. Judge Irvine said she would be the duty judge looking after all emergency applications until Thursday and would aim to provide a judgment in the O'Flynn case by Monday next.
On Thursday last Mr Cush was granted permission from the court to serve short notice on Carbon of the O’Flynns’ intention to overturn the appointment on grounds of alleged non-disclosure of key facts to the court and improper purpose.
He said that what was really at the heart of the Carbon petition was the removal of the O’Flynn brothers, the principal shareholders in the four companies, who are also challenging demands made of them last Tuesday for immediate repayment of €20 million personal loans.
He said the O’Flynns claim their loans were not in default and had not been given reasonable time to repay them. The repayment demands, accompanied with the appointment of receivers, were part of the alleged strategy of Carbon to take over the O’Flynn companies. Blackstone had bought €1.8bn loans of companies in the O’Flynn group from Nama which, it is alleged the O’Flynn companies had provided guarantees over.
Today’s application was adjourned briefly while affidavits were prepared and Judge Irvine dealt with other emergency applications.
