Michael Flatley is “ready, willing and able” to pay off the entire loan at the centre of a dispute which is linked to receivers being appointed to his Cork mansion, Castelhyde, the Commercial Court has heard.
Lawyers for the Lord of the Dance star sought to have a hearing where he is seeking a full injunction restraining a receiver taking steps in relation to his Fermoy mansion adjourned after it had opened before a judge. This was on the basis that the capital and interest accrued, amounting to more than €6 million, would be paid.
The original €5.6 million loan at issue was 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 claims 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 in Fermoy, Co Cork. As a result of the alleged default, Novellus appointed a receiver over the property .
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In the Commercial Court on Wednesday, counsel for Blackbird and Mr Flatley, Ronnie Hudson, told the court Mr Flatley’s solicitor Maxwell Mooney had been instructed to seek not to have the injunction application progressed before the court on the basis the redemption amount of capital and interest would be paid.
Mr Flatley would also agree “under protest” to put a disputed amount – which is understood to include various costs including legal and receivers costs – into an escrow account.
Counsel said almost €1 million in arrears had already been paid off, and the loan was no longer in arrears.
“I can’t understand why they won’t accept it. Michael Flatley has shown bona fides and nearly €1 million of arrears has been paid,” Mr Hudson said.
He claimed that Blackbird and Mr Flatley believed the Novellus side “want the property”.
Counsel for Novellus, Kelley Smith SC, said her side had not had sight of a loan facility and it was “another attempt to put off the evil day”. Ms Smith said: “Frankly, it comes too late.”
Mr Justice Mark Sanfey decided to go ahead with the injunction hearing, and said if the parties wanted to talk, then they could do so after the court rose and advise the bench on Thursday morning.
The judge said he could not hold up a hearing on the basis of an assertion. He said to the credit of the Blackbird/Flatley side, the arrears had been paid but they are “dwarfed by the redemption sum”.
Earlier, Mr Hudson submitted the injunction application was important to Mr Flatley because he said if they are not successful, it had been indicated the defendants will take possession of the property and market it in the usual way. He said Mr Flatley intended to refurbish and live at Castlehyde.
Ms Smith pointed out to the court that it was the Novellus case that Mr Flatley in September 2024 did not have the money to pay the contracted monthly payment of €67,000 and the idea, she said, of Blackbird being forced into default was “wrong headed”.
“It is all smoke and mirrors,” counsel added.
The case continues on Thursday.
