DEVELOPER brothers Michael and John O'Flynn have succeeded in removing the interim examiner appointed to four key companies in their construction group and have been put back in charge of their business by the High Court.
Ms Justice Mary Irvine yesterday blocked Blackstone subsidiary Carbon Finance from enforcing personal or corporate loan demands. She also stood down four receivers appointed to the O'Flynn companies.
Judge Irvine also restrained new directors appointed by Carbon Finance to the O'Flynn companies from purporting to act as directors of Colebridge International Limited or any other O'Flynn company.
She removed the interim examiner appointed to the four companies on July 29 and directed Carbon Finance to immediately re-appoint the O'Flynn brothers as directors to their companies.
Judge Irvine's orders became effective immediately.
A full trial of all issues before the court will take place in the new law term, beginning on October 7.
The judge said Carbon Finance had not acted in utmost good faith and had not fully disclosed all relevant information to Judge Brian McMahon on July 29 when he had agreed to Carbon's application for the appointment of the examiner.
In May, Carbon had bought from NAMA €1.8bn in loans tied to O'Flynn Construction and within weeks had moved to appoint an interim examiner after having made demands for the immediate payment of €16.6m of personal loans which Michael O'Flynn stated could have been raised had he been given reasonable time.
Judge Irvine said in assessing whether damages would be an adequate remedy in respect of any loss the O'Flynns may suffer between now and the determination of the trial judge in October, it was necessary to reflect on what had occurred since July 29.
Carbon had appointed receivers over the entire issued share capital of a significant number of companies, including the parent company Colebridge. It had removed the existing directors, including the O'Flynns, and replaced them with their own agents.
The O'Flynns had lost control over management and would have no further say in what happened to them. If the relief sought by the O'Flynns were refused it was hard to predict what the group was likely to look like by the time of trial.
Judge Irvine said she was entirely satisfied the interests of justice required that the companies remained under the control of the O'Flynns until the trial of the action.