Michael Flatley granted more time to pay off loan at centre of dispute over Castlehyde mansion

The lender seeking full repayment of a loan at the centre of a dispute over Lord of the Dance star Michael Flatley’s Castlehyde mansion has told the Commercial Court that no payment had been made to redeem the €6.9m loan by Monday afternoon.

The High Court was being updated after Mr Justice Mark Sanfey gave the Flatley side until Monday afternoon to pay off the loan and he warned he would take “an extremely dim view” if the transaction was not completed by 2pm.

When the court resumed at 2pm on Monday afternoon, Counsel for Novellus Finance, Kelley Smith SC said 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 application heard last week to set aside the interim injunction against the receiver of Castelyhyde from taking further measures or whether an interlocutory injunction was to be granted to the Flatley side.

Counsel for Mr Flatley, Ronnie Hudson instructed by Maxwell Mooney solicitor 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.

However, Mr Justice Mark Sanfey gave the Flatley side until tomorrow at 12.30 pm when he will hear again from the parties on whether the full redcemption amount has been paid.

LOAN

At issue in the case is 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 last week’s applications 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 today Monday to update the court on the matter after the Flatley lawyers told the court the loan was “on the cusp of redemption.” 

The entertainer’s lawyer Ronnie Hudson BL on Monday morning told the court there had been “substantial engagement” at the weekend , that “everything has been signed” and the money was going to be paid by 2pm. He said if the court case was put back to 2pm, he would be in a position to confirm payment.

'SHOW ME THE MONEY'

Last week 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.”

In court on Monday afternoon, Kelley Smith SC for Novellus said the money just had not come in. She said the sky would not fall in if the the court gave its ruling on the injunction applications but it would stop the “continual treadmill” of coming back to court.

Mr Hudson pointed out if the interim injunction was lifted the Castlehyde receiver would be “active.” 

Mr Justice Sanfey who had earlier said the word “exhausting” had been used by the Novellus side in relation to the matter and it was “an accurate word” adjourned the matter to Tuesday.

The judge said on Tuesday if the money has been transferred to the Novellus solicitors Arthur Cox and Company, he will hear the parties on the order to be made or if the money has not been transferred, he will give judgement on the injunction applications on Wednesday.

Michael Flatley flew in to Dublin from Monaco on Friday with his close friend Prince Albert of Monaco on the royal’s private jet.

They both attended attending the Six Nations Championship game between Ireland and France at the Aviva stadium.