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Developer O'Flynn close to deal with Blackstone

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Developer Michael O Flynn

Developer Michael O Flynn

Developer Michael O Flynn

Cork-based property developer Michael O'Flynn and US venture capital giant Blackstone have reached an outline agreement to solve their long-running legal dispute.

The Irish Independent understands the final agreement will allow Mr O'Flynn to keep his Irish assets which include the landmark Elysium Tower in Cork while Blackstone will take control of the foreign assets.

It is understood that Mr O'Flynn stands to pay significantly less than the €400m he had offered before Christmas as repayment towards his loans.

No comment

Neither Mr O'Flynn nor Blackstone would add to their brief statement confirming an "outline" agreement.

The fate of O'Flynn's battle with US private equity giant Blackstone will now be decided by February 13 after an earlier deadline passed this month.

Blackstone subsidiary Carbon Finance tried unsuccessfully to seize control of the group last year and remove Mr O'Flynn and his fellow directors from running it.

It sought immediate payment of a personal loan, triggering a default on much bigger company loans, and applied for the appointment of an examiner to four key companies in the group.

Mr O'Flynn successfully challenged both moves in the High Court.

Signs of an agreement have been visible for some time but yesterday's statement was the first official indication that the two sides are close to reaching a deal.

Wealthy

Mr O'Flynn recently revealed plans to build a luxury housing complex in South County Dublin for wealthy buyers next year.

It would be the first significant new building project for the developer since he entered the National Asset Management Agency in 2010.

The O'Flynn group was one of the biggest Irish construction companies in Ireland during the boom.

But it has effectively been in limbo since almost €2bn of debts attached to its assets passed into Nama's control four years ago.

The Cork group has been servicing its large property empire in Ireland, the UK and Germany since then, but it has had little scope for new developments.

Irish Independent