O'Flynn to get new loans as part of Nama deal
O'FLYNN Construction, one of the top 10 companies to have loans moved to NAMA, is to get fresh loans from the agency as part of its recently signed-off agreement.
O'Flynn reached agreement on April 20 with NAMA and several loans have been extended on the back of this. An auditor's note discloses that NAMA will also provide "some additional new facilities".
"The full detail of terms and the related formal facilities has not yet been finalised but the directors expect to have it concluded by mid 2011,'' said auditors to the company.
This means that O'Flynn may soon become one of the few development companies with a full agreement with NAMA, known as a term sheet. Most of the country's major developers are at an earlier stage -- where there is simply a memorandum of understanding between the two sides.
O'Flynn, which built the Elysian Tower and Lapps Quay in Cork, has been one of the few development companies to attract private-equity finance over the last two years, working with firms like Westbrook Partners in the UK.
Michael O'Flynn told the Irish Independent recently the property development industry must change its funding model from one based on bank finance to one based on equity instead. He has also complained on several occasions about the way the planning system worked. O'Flynn Construction is a major landowner in Cork and Dublin.
The auditor's note sums up the position of the firm: "The company's ability to continue as a going concern is dependent on the continued support of its lenders."
The company's directors do not regard the values at present as "true and fair'', it adds.