Developer Michael O'Flynn and US fund Blackstone are set to agree a deal over the Cork businessman's property-related debts that will end the dispute between the pair that began last July.

The private equity investor last year bought the O'Flynn Construction Group's debts from the National Asset Management Agency (Nama) for €1.1 billion, a €700 million discount on their face value.

The two ended up in court last July after Blackstone vehicle Carbon Finance attempted to appoint receivers to the O'Flynn Group and place it in examinership, claiming that it was unable to repay some of its debts.

They subsequently began negotiations and put in place a “standstill” agreement on the repayment of all liabilities which was due to run out yesterday.

That has been extended for two weeks to allow the two sides to work out the details of a deal that was reached following several days of talks.

In a joint statement, they said, “Following constructive engagement in recent weeks, Carbon Finance and O’Flynn Construction Group have concluded an outline agreement on a consensual basis”.

The agreement signals the end of the legal dispute sparked when Carbon attempted to place the O’Flynn business in examinership in what was claimed to be a bid to wrest control of it from Mr O’Flynn and remove him and his fellow directors.

The fund denied this.