John Flynn to fight for control of Blackrock Clinic stake

Goodman firm Breccia acquired €9m loan from Nama owed by Flynn company

John Flynn: to argue that Breccia moved against his company too quickly and without proper regard to the underlying loan documentation. Photograph: Collins

John Flynn: to argue that Breccia moved against his company too quickly and without proper regard to the underlying loan documentation. Photograph: Collins

Thu, Aug 21, 2014, 16:04

Developer John Flynn has appointed legal advisers to challenge within days an attempt by beef baron Larry Goodman to seize control of Mr Flynn’s 8 per cent stake in the Blackrock Clinic in Dublin.

Mr Goodman’s investment company Breccia recently acquired a €9 million loan owed by a Flynn company which holds the Florida-based businessman’s shares in the clinic, from the National Asset Management Agency.

Last week Breccia appointed a receiver, Michael McAteer of Grant Thornton, over the Blackrock shares held by Flynn’s company called Benray. This gave Mr Goodman effective control of Mr Flynn’s 8 per cent stake, adding to the meat baron’s existing holding of 29 per cent.

Mr Flynn has appointed Dublin-based Downes Solicitors and banking specialist barrister Jarlath Ryan to take his case. He plans to claim that Mr Goodman company was wrong to seize control of his shares and its receivers should be removed.

Mr Flynn’s Blackrock loan is understood to have been performing but it ended up in the Nama after his loans were transferred over to the State loans agency from Anglo Irish Bank.

His counsel will argue that similarly to the recent Michael O’Flynn case against investment fund Blackrock, Breccia moved against Mr Flynn’s company too quickly and without proper regard to the underlying loan documentation. Mr Goodman is expected to deny this. The case is understood to be within days of being taken.

Separately, a New York judge has said Mr Flynn and related entities had acted with “breathtaking irresponsibility” in asking him to reconsider his decision to dismiss Mr Flynn’s case against Nama and the former management of Anglo Irish Bank using anti-Mafia laws.

District Judge Lewis A Kaplan ruled in July that the civil racketeering case being taken by Mr Flynn and members of his family should be dismissed on the grounds that it related to Ireland more than the US. He did not as a result consider the substantive arguments made by Mr O’Flynn in relation to loans owed by the developer, his family and companies to the former Anglo Irish Bank of $200 million. Judge Kaplan said the grounds presented to him to reconsider his decision were “preposterous”.

He concluded his 16-page ruling saying: “In view of its transparent lack of merit, this motion properly could have been disposed of in a single word. The court nonetheless has written to make clear that each and every argument made by plaintiffs has been considered with care and found wanting, as well as to make the point that the filing of this motion was abusive.”

Judge Kaplan also said “the attempt to portray Ireland as lacking an adequate alternative forum is frivolous” and that “the claim of fraud by the defendants with respect to alleged jurisdictional facts’ concerning the Flynns’ domiciles is baseless.”

Mr Flynn has been involved in a bitter dispute with Nama, which he alleged in a recent Sunday Independent interview was “like North Korea”.

“They are an evil empire, a cancer on the economy and on the country and I believe that, honestly. They are answerable to nobody,” he said.

Nama did not respond to these allegations but said: “The matters at issue between the debtor and Nama have been determined by courts in a number of jurisdictions and Nama has nothing further to add.”