The Commercial Court is to be asked to hear Michael Flatley’s injunction application to further restrain a receiver from taking steps over his Castlehyde home in Cork.
Mr Justice Brian Cregan was told in the High Court on Wednesday an application will be made next week to admit the matter to the fast-track commercial division.
It is to be brought by defendants Novellus Finance Ltd, its CEO William McManus and accountant Kieran Wallace, who was appointed receiver over Castlehyde last December.
They deny claims made against them by Mr Flatley in proceedings he brought last week seeking a short injunction preventing the receiver taking steps to repossess Castlehyde. The injunction was granted while only Mr Flatley’s side was in court. It was continued on Wednesday pending next week’s application to admit the case to the commercial list.
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Barrister Eoin Coffey, for the defendants, told the court his clients dispute the allegations made by Mr Flatley and his company Blackbird Film Productions Ltd.
The receiver was appointed following an alleged default on a €5.6 million loan taken out by the film company and over which Castlehyde was used as security. Mr Flatley claims that all loan repayments had been made in full by the film company.
Barrister Ronnie Hudson, instructed by Maxwell Mooney solicitor, for the Flatley side, last week told the court a security firm on behalf of the receiver had tried to get into the Castlehyde property.
Mr Flatley was guarantor on the 2023 loan to Blackbird, which was secured over Castlehyde. Blackbird’s monthly repayments were €66,000.
Mr Flatley claims Novellus was told Blackbird would be redeeming the loan agreement in September. It is further claimed that Novellus chief executive William McManus 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 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The effect of the alleged actions it is claimed is that a refinance offer by the other finance company was withdrawn.
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, for Mr Flatley and Blackbird, told the court that Mr Flatley’s business is worth €200 million.
The other finance company withdrew its refinance offer at the end of November.
Mr Justice Cregan continued the interim injunction pending the application before the Commercial Court.
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