O'Flynn Construction Group has reached agreement for a "consensual resolution" to its battle with Blackstone 's Carbon Finance unit, and has extended its standstill agreement until February 13th in order to work out the finer details of the agreement.

Last August, US fund Blackstone moved to take control of Michael O’Flynn’s property and construction empire, placing its trading companies under the High Court’s protection and appointing receivers to some other elements. In December, both sides agreed to adjourn their legal battle until January 30th, to allow discussions take place after O’Flynn Construction submitted a plan to pay up to € 400 million to Blackstone at the end of October.

But a statement on Friday said that following “constructive engagement” both sides have “concluded an outline agreement on a consensual basis”.

Details of the agreement are being finalised and, to facilitate this, the standstill agreement has been extended from January 30th until February 13th 2015.

Blackstone is O'Flynn Construction's primary secured creditor after it acquired company debts from the National Asset Management Agency of € 1.8 billion. Blackstone paid about € 1.1 billion for these loans using a company called Carbon.