Michael Flatley regards €6.9m loan settlement that 'kept his home away from the receiver as a win'
The Riverdance star earlier this week paid off the €6.9million loan at the centre of a dispute over his Castlehyde mansion in Fermoy, Co Cork. File picture
Lord of the Dance star Michael Flatley, who had to pay off a €6.9million loan to keep a receiver from the doors of his mansion, Castlehyde, regards it as a win, the Commercial Court heard on Friday.
His lawyer Ronnie Hudson BL told the court the entertainer regards the fact “that he kept his home away from the receiver as a win”.
Mr Hudson instructed by Maxwell Mooney solicitor added: “Michael Flatley is very grateful to the court and he has specifically instructed us to communicate that to the court and his personal relief that his house is saved from the receiver.”
The case was back before a judge to decide some costs issues around the recent court appearances.
Mr Flatley’s lawyers indicated that the Flatley side were prepared to pay those costs surrounding the interim and interlocutory injunction applications and the Riverdance star regarded it as a win.
Counsel for the lender Novellus, Kelley Smith SC said her client felt vindicated and she referred to a letter from the Flatley side which said they are prepared in relation to the substantive proceedings to narrow the issues for the court to adjudicate upon the disputed sum in relation to legal and receiver's costs and default interest.
Mr Justice Mark Sanfey at one stage remarked that the matter “dragged on interminably” which he said was not usual in the big business section of the High Court.
Mr Flatley earlier this week paid off the €6.9million loan at the centre of a dispute over his Castlehyde mansion in Fermoy, Co Cork.
The court on two occasions had set a deadline for the money transfer into the account of the solicitors on behalf of the lender who three months ago had a receiver appointed over Castlelhyde.
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 last weekend to sign documentation to allow for finance to pay off the loan.
In the Commercial Court on Friday, the court heard that in a letter to the Novellus side, Michael Flatley’s solicitor Maxwell Mooney said he had taken instructions relating to costs of the interlocutory injunction application which was heard by the court over two days. He said the Flatley side agreed to pay the costs on the basis of it now not being necessary for a judgement to be delivered.
Mr Justice Sanfey made an order for the Flatley side to pay those costs and other costs relating to the Novellus side seeking to set aside the interim injunction against the receiver taking further steps in relation Castlehyde.
However, what remains in dispute is a €1.4million costs bill which includes legal fees on the Novellus side of €793,000, the receiver’s legal fees of €186,000 and the receiver’s costs of €86,000 and a six-figure sum requested in relation to default interest.
The money has been lodged in court. Mr Hudson said the Flatley side, in relation to the receiver’s costs bill, needed vouching documentation.
Mr Justice Sanfey gave the parties time until the end of the month to engage with each other on the matter remarking that it “should be possible to agree what you disagree about”.
