When the National Asset Management Agency (Nama) recently sold loans – worth €1.8 billion – of the O'Flynn Group, to Blackstone, a US investment company, it hailed the transaction as something of a major coup. Nama's chief executive, Brendan McDonagh said the State agency was "particularly pleased" to agree the sale with such a "reputable international counter-party as Blackstone". However Nama could not have known that within three months the US company would be in court, to secure the appointment of an interim examiner and receivers to key parts of the O'Flynn Group, owned by two Cork developers, Michael and John O'Flynn.

Michael O'Flynn claimed vindication this week when the High Court found in his favour. The court removed the interim examiner and receivers, and strongly rebuked the conduct of Carbon Finance, the Blackstone subsidiary that has acquired the O'Flynn companies' debts. Ms Justice Mary Irvine blamed Carbon for failing to disclose full information when making its original court application; for not acting with utmost good faith; and for not allowing Mr O'Flynn adequate time to repay personal loans of €16.7 million. But his court success is a battle won in what could yet be a long war. Next October, a full trial of all the legal issues in the case will begin.

Mr O’Flynn says he can repay the personal loans, and will be able to pay a €235 million sum owed to Blackstone by year-end. What the case highlighted was that Carbon Finance acted aggressively and unfairly in its legal action. The US company insists the steps it took were “necessary and appropriate”. The case raises some worrying questions: whether Nama is under Government pressure to wind up its operations quickly, sooner than the original projected deadline of 2020? And whether Nama is best protecting the longer-term interests of taxpayers by selling on so many loans to large private equity companies that may be more intent on realising a quick profit, than helping to rebuild the Irish construction sector.