A High Court judge has given Michael Flatley until Tuesday to pay off the €6.9 million loan at the centre of a dispute over his Castlehyde mansion in Co Cork.
Mr Justice Mark Sanfey had given the Lord of Dance star until 2pm on Monday afternoon to pay off the loan, and warned he would take “an extremely dim view” if the transaction was not completed.
When the court resumed after the deadline, counsel for Novellus Finance, which made the loan, 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 judgment from the bench on an 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.
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Counsel for Mr Flatley, Ronnie Hudson BL, 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.
Mr Justice Sanfey gave the Flatley side until 12.30pm on Tuesday, when he will hear again from the parties on whether the full redemption amount has been paid.
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.
Lawyers for Mr Flatley had asked for Mr Justice Sanfey to hold off on giving his judgment 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 side told the court the loan was “on the cusp of redemption.”
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Mr Hudson 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 case was put back to 2pm, he would be in a position to confirm payment.
Last week, counsel for Novellus Finance submitted to the court that there have been “empty promises” and its refrain now was “show me the money.”
On Monday afternoon, Ms Smith for Novellus said the money just had not come in. She said the sky would not fall in if 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 adjourned the matter to Tuesday. The judge said that 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 judgment on the injunction applications on Wednesday.
