KILDARE businessman, Philip Lynch, is suing his former employer, it was reported over the weekend.
Philip Lynch, the dealmaker who built up One51 before being dramatically ousted last summer, is now suing them. According to the Sunday Independent, Lynch launched legal proceedings last week. It is understood that the court case relates to the payment of the former One51 boss’s compensation package. Lynch is represented by Meagher Solicitors, according to legal filings. As well as One51, Chandela Investments and Chandela Nominees are also subject to Lynch’s case.
Chandela Investments was a patent royalty company, which paid key One51 personnel royalties. Some €5m was paid to nine unnamed directors by the company in 2010. The Revenue Commissioners has raised questions about patent royalty arrangements, but last September One51 chief executive Alan Walsh described the Chandela scheme as “legitimate” at the company’s AGM.One51, which announced pre-tax losses of €121m last week, took a major writedown on the value of its assets. The company faces some major strategic issues with its heavy net debt load unchanged at €146m. One51 is slowly offloading non-core interests, with its stake in IFG sold last January. The company has major stakes in listed ferry group ICG and waste to toll roads firm NTR.
It was reported that Relations between the company and some of its larger shareholders have become strained. A shareholder group has sought the removal of 10 of the One51 directors and their replacement by financier Pascal Taggart and businessmen John McStay, Colin Hayes and John Hegarty.