Michael O’Flynn to keep development properties in deal with Carbon

Builder Michael O'Flynn will keep development properties in Ireland and Britain under the terms of a deal struck with US fund, Blackstone, that ends a dispute between the pair.

Blackstone bought the O'Flynn group's €1.8 billion debt for €1.1 billion from the National Asset Management Agency (Nama) last year.

The Cork businessman and Blackstone offshoot, Carbon Finance, have been in talks aimed at ending a dispute that blew up last July when the US fund unsuccessfully attempted to place the O’Flynn group in examinership and appoint receivers to a number of its businesses.

In a joint statement issued on Friday, the pair say they have signed “binding heads of agreement under which Michael O’Flynn will acquire most of his group’s development assets, most of which are in Ireland, but with some in Britain) while Carbon keeps the rest of the portfolio.

“The parties continue to work collaboratively on transitional arrangements,” the statement adds. A “standstill agreement” under which the group was not required to make any repayments against its liabilities will be extended for a further three weeks.