Renowned dancer and “Lord of the Dance” star Michael Flatley is embroiled in a legal battle over his esteemed Castlehyde mansion in County Cork, Ireland. The dispute centers on a €6.9 million loan taken by his company, Blackbird Film Productions Ltd, from Novellus Finance Ltd, with Flatley personally guaranteeing the loan against his mansion. Alleged defaults on this loan have led Novellus to appoint a receiver over the property, escalating tensions and legal proceedings.​

Michael Flatley Background of the Loan Agreement

In 2023, Blackbird Film Productions Ltd secured a €5.6 million loan from Novellus Finance Ltd, structured with monthly repayments of €67,000 over two years. Flatley provided a personal guarantee for this loan, leveraging the value of Castlehyde mansion as collateral. Novellus claims that the company defaulted on repayments, a claim Flatley disputes, leading to the appointment of a receiver over the property.

Legal Proceedings and Court Deadlines

The legal tussle intensified when Novellus sought to enforce the loan agreement, prompting Flatley to seek an interlocutory injunction to prevent the receiver from taking further actions concerning Castlehyde. During a recent High Court session, Flatley’s counsel, Ronnie Hudson BL, informed the court that Flatley intended to repay the loan and was scheduled to travel to Dublin to sign the necessary documents. Hudson stated that the loan was “on the cusp of redemption,” with the redemption figure now standing at €6.9 million. ​

However, Kelley Smith SC, representing Novellus, expressed skepticism, citing previous unmet promises and emphasizing their stance: “show me the money.” In response, Mr. Justice Mark Sanfey granted Flatley until 2 p.m. on Monday to complete the transaction, warning that he would take “an extremely dim view” if the payment was not made by the stipulated time.

Disputed Fees and Costs

Beyond the principal loan amount, there is contention over additional fees and costs totaling €1.49 million. This sum includes legal fees amounting to €793,000 and the receiver’s legal fees of €186,000, among other expenses. Flatley’s legal team has proposed paying the disputed amount into court, pending resolution, while proceeding with the loan redemption to prevent further actions against Castlehyde. ​

Current Status and Implications

As of the latest court session, no payment had been made to redeem the €6.9 million loan. Smith informed the court that “it simply has not been made,” and urged the court to issue an immediate judgment on the application to set aside the interim injunction against the receiver. In light of this, Mr. Justice Sanfey extended the deadline, granting Flatley until 12:30 p.m. on Tuesday to complete the payment, with the understanding that failure to do so would result in a judgment on the injunction applications on Wednesday.

Potential Outcomes and Broader Implications

The outcome of this dispute holds significant implications for Flatley’s ownership of Castlehyde mansion. Failure to resolve the loan repayment could lead to the enforcement of the receiver’s powers, potentially resulting in the sale of the property to satisfy the debt. This case also underscores the complexities and risks associated with leveraging personal assets as collateral for business loans, highlighting the importance of clear terms and diligent financial management.​

Conclusion

Michael Flatley’s legal battle over the €6.9 million loan tied to his Castlehyde mansion remains unresolved, with court-imposed deadlines looming. The case serves as a cautionary tale about the potential pitfalls of intertwining personal assets with business liabilities and the critical need for meticulous financial oversight.

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