Court hears disagreement over financial state of O'Flynn Group

Wednesday 06 August 2014 17.00
The O'Flynn Group denies claims it was uncooperative with the company that acquired its loans in May
The O'Flynn Group denies claims it was uncooperative with the company that acquired its loans in May

The 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 decision over the examinership, which was made following an application by Carbon Finance.

The subsidiary of the 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 the company was wrong to say there was no cooperation from the O' Flynn Group and an order directing cooperation was extraordinarily damaging to Mr O' Flynn.

Mr Cush claimed that the group was cash flow solvent.

However Carbon Finance disagrees. 

It said there had not been full cooperation from  the group and  its balance sheet was 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.