Lord of the Dance star Michael Flatley is to travel to Dublin on Friday to sign documents in a move to pay off the multi-million euro loan which is at the centre of a dispute over his Cork Castlehyde mansion, the High Court has heard.
The entertainer’s counsel, Ronnie Hudson BL, on Thursday told the court the new redemption figure on the disputed loan which had been taken out by Mr Flatley’s film production company, with the former Riverdance star as guarantor, now stands at €6.9m. The loan, counsel said, was “on the cusp of redemption”.
However, counsel for the company Novellus Finance which had a receiver appointed over Castlehyde over alleged loan default, submitted to the court that there have been “empty promises” and its refrain now was “show me the money”.
At issue in the case is the original €5.6m 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.
Mr Hudson, instructed by solicitor Maxwell Mooney, asked for Mr Justice Mark Sanfey to hold off on giving his judgement on whether an interlocutory injunction should be granted to prevent the receiver over Castlehyde taking any further steps in relation to the mansion outside Fermoy.
The judge had heard the matter last week and was due to give judgement on Friday.
Counsel said he accepted that it was not really satisfactory and the matter had dragged on so long. “It is at a critical point where the money is going to be paid. Mr Flatley is travelling to Dublin on Friday to sign the documentation,” counsel added.
He said what was disputed was €1.49m in fees and costs which includes, he said, legal fees of €793,000 with the receiver’s legal fees coming in at €186,000 along with the receiver’s other costs of just over €86,000. He said it was the intention of the Flatley side to pay the disputed bill into court.
Counsel for Novellus, Kelley Smith SC instructed by Arthur Cox solicitors, said the latest pledge to pay off the loan “was another ham-fisted attempt to put off the finding of the court”. She said there had been “empty promises” from the Flatley side and her clients’ refrain was now “show me the money”.
She said the patience of her client “was now well worn”. Ms Smith said their side would prefer if the redemption money in full and the disputed costs bill were paid and their solicitors would lodge the disputed €1.49m in court.
She said that every promise made by Michael Flatley had to be responded to and “all this drives the costs”. Mr Justice Sanfey, who remarked that it was a very unusual case, said the parties can update the court next Monday on whether the loan redemption has been advanced.
