Company claims removing O'Flynn companies from examinership would be damaging

Wednesday 06 August 2014 21.55
Michael O'Flynn said he is not and never has been insolvent
Michael O'Flynn said he is not and never has been insolvent

A company, which succeeded in having an interim examiner appointed to the O'Flynn Group, claims it would be damaging to the group's companies and employees if they were removed from examinership.

Four companies in the Cork-based group are trying to overturn last week's High Court's decision, which was made following an application by Carbon Finance.

The subsidiary of US private equity fund Blackstone acquired €1.8bn of the group's loans from the National Asset Management Agency in May.

In a statement to the court, Michael O'Flynn said he would like to strongly stress that he is not and never has been insolvent.

His barrister Michael Cush told the court today that there was "staggering non-disclosure" by Carbon Finance during its successful application last week to have an interim examiner appointed.

He said Carbon Finance was wrong to say there was no cooperation from the O'Flynn Group and an order directing cooperation was extraordinarily damaging to Michael O'Flynn.

Mr Cush claimed that the group is cash flow solvent. But Carbon Finance disagrees.

It says there has not been full cooperation from the group and its balance sheet is insolvent.

Eoin McCullough, acting for Carbon Finance, said in the very near future the company will be cash flow insolvent also.

He said removal from the examinership process would be damaging to the companies and the employees.

The hearing will continue tomorrow.