Michael Flatley has paid off €6.9m loan at centre of Castlehyde dispute, court told
Michael Flatley had provided a guarantee for the loan on the strength of the value of his Castlehyde mansion. File picture
Lord of the Dance star Michael Flatley has paid off the €6.9million loan at the centre of a dispute over his Castlehyde mansion in Co Cork, the Commercial Court has been told.
The entertainer had been given until Tuesday to make the monies transfer into the account of the solicitors on behalf of the lender who had a receiver appointed over Castlehyde three months ago. Mr Justice Mark Sanfey, who had stipulated a 12.30pm deadline on Tuesday for the transfer to be made, was told the monies had been paid.
However, another legal row may be about to erupt as the lender’s side asked the Flatley side to consent to paying the legal costs of the court applications and the Flatley legal team said it had no instructions on the matter.
Counsel for the lender Novellus Finance, Kelley Smith SC, at the outset told the court the transfer was made at 7.50pm on Monday evening but she said it fell short In that it did not include the cost of court appearances on the matter over the last two days and the “62 emails on Monday“ in relation to the matter.
She said she anticipated the release of the charge later on Tuesday once all the matters were attended to and the previously disputed €1.49million in legal costs and receiver's costs was lodged in court.
Counsel for the Flatley side, Ronnie Hudson BL instructed by Maxwell Mooney solicitor, confirmed the funds had been paid and he said it now showed “status paid”. Mr Hudson said it was possible the Flatley side would be seeking its costs in relation to the recent applications.
At issue in the case was a loan made to Mr Flatley's Blackbird Film Productions Ltd by Novellus Finance Ltd with registered offices at St Stephen’s Green, Dublin, in 2023 with repayments of €67,000 per month over two years. Novellus claimed there has been default on repayment, which Mr Flatley denies.
Mr Flatley provided a guarantee for the loan on the strength of the value of his Castlehyde mansion. As a result of the alleged default, Novellus appointed a receiver over the property.
The Flatley side had asked for Mr Justice Mark Sanfey to hold off on giving his judgement on whether to set aside the interim injunction stopping the receiver taking steps or grant an interlocutory injunction to the Flatley side and said Mr Flatley was flying into the Dublin at the weekend to sign documentation to allow for finance to pay off the loan.
The judge had given the Flatley side until Monday to update the court on the matter after the Flatley lawyers told the court the loan was “on the cusp of redemption”.
However, on Monday afternoon counsel for Novellus Finance, Kelley Smith SC, told the court no payment had been made.
“It simply has not been made,” she said. She asked the court to give an immediate judgement from the bench on the applications heard last week.
Counsel for Mr Flatley, Ronnie Hudson BL, told the court the final redemption figure had been received and the transfer would be made but it may not hit the accounts of the solicitors for Novellus immediately.
In court on Tuesday, Mr Hudson on the costs issue said the Flatley side had sought mediation and he now needs to take instruction on the matter and the parties might be able to come to some arrangement.
Mr Justice Sanfey said if he had to rule on costs, he will also have to give a judgement on the injunction applications.
Mr Hudson said Mr Flatley will be sending a letter asking to resolve the issues through mediation. He said a judgement on the injunctions applications at this stage may cause further delay and cost.
Ms Smith said they “were going backwards” and her clients wanted vindication in relation to its position. Mr Justice Sanfey said he will give judgement next week if it needs to be done, but he put the case in for mention on Friday this week.
