The fastrack Commercial Court is to be asked to hear Michael Flatley’s injunction application to further restrain a receiver from taking steps over his Cork mansion Castlehyde.
His lawyer Ronnie Hudson Bl instructed by Maxwell Mooney solicitor told the High Court on Wednesday he had been informed by the other side that an application will be made next week to admit the matter to the Commercial Court list.
Counsel asked that an interim injunction which had been granted preventing the receiver taking steps in relation to the luxury mansion at Fermoy to be continued until the application comes before the Commercial Court.
The application to admit the case to the big business court on next Monday is to be made by Novellus Finance and its CEO along with the receiver which was appointed over the property at the start of December.
Counsel for all three Eoin Coffey BL told the court that the defendants dispute the allegations being made by Mr Flatley and his film company Blackbird Productions Ltd.
Last week a High Court judge granted an interim injunction to Mr Flatley restraining a receiver or his agents from taking steps in relation to the star’s Fermoy, Co Cork mansion, Castelhyde.
The order was made as it emerged that the mansion had been put up as security on a €5.6 million loan taken out by his London film company in 2023 and a receiver had last week been appointed over Castlehyde.
The receiver was appointed in a row over the repayment of the loan with the film company and Mr Flatley saying that all loan repayments had been made in full by the film company.
Mr Flatley and London film company Blackbird Film Productions Ltd had last week gone to court on an ex parte basis where only one side is represented seeking to restrain the receiver from taking any steps to enforce by sale or by auction or otherwise or to take possess of CastleHyde.
When Mr Flatley’s lawyers informed the court a security firm on behalf of the receiver had tried to get in to the Castlehyde property on Thursday afternoon, the judge granted an interim injunction until further order of the court.
The row relates to a loan from Novellus Finance in 2023 with registered offices at St Stephen’s Green, Dublin to Blackbird. Mr Flatley who in court documents has an address in Monaco was guarantor and the secured property was Castlhyde. The loan repayments on the loan for Blackbird were about €66,000 a month.
In April 2024, according to court documents it is claimed that Novellus was told Blackbird would be redeeming the loan agreement in September.
It is further claimed that the chief executive of Novellus Finance, William McManus allegedly contacted the chief executive of another finance company and allegedly said the proposed security Castlehyde was only worth €8 million to €10 million. It is further contended that it was allegedly wrongfully misrepresented that Blackbird was in default when in fact it was fully up to date on repayments.
The effect of the alleged actions it is claimed is that a refinance offer by the other finance company was withdrawn.
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In November this year it is claimed a final attempt to keep the second financial deal alive was made with a 10 per cent interest in Mr Flatley’s business being offered.
Mr Hudson told the court that Mr Flatley’s business is worth €200million.
The other finance company at the end of November withdrew their refinance offer.
Mr Justice Brian Cregan today continued the interim injunction for seven days and it is to remain in place pending the application before the Commercial Court and the case will also come back before the chancery court next Wednesday.
Sourse: breakingnews.ie
