A High Court judge has granted an interim injunction to Lord of the Dance star Michael Flatley restraining a receiver or his agents from taking steps in relation to the star’s Cork mansion Castelhyde.
The order was made as it emerged that the mansion had been put up as security on a €5.6 million loan taken out by his London film company in 2023 and on Tuesday this week a receiver was appointed over Castlehyde.
The receiver was appointed in a row over the repayment of the loan with the film company and Mr Flatley saying that all loan repayments had been made in full by the film company.
Mr Flatley in an affidavit to the court said the appointment of a receiver is injuring his personal and property rights and Castlehyde is his home in Ireland and not a commercial premises.
Mr Justice Mark Sanfey made the order after Mr Flatley’s lawyers told the court that a security firm on behalf of the receiver had on Thursday afternoon tried to get in to the Fermoy property but had been met by the gardener.
Mr Flatley and London film company Blackbird Film Productions Ltd had gone to court on an ex parte basis where only one side is represented seeking to have an interlocutory injunction to restrain a receiver from taking any steps to enforce by sale or by auction or otherwise or to take possess of CastleHyde.
The judge initially gave Mr Flatley’s lawyers short service to next week but within thirty minutes Ronnie Hudson BL instructed by Maxwell Mooney solicitor had returned to the chancery court to inform the judge that they had been told a security firm on behalf of the receiver had tried to get in to the Castlehyde property on Thursday afternoon.
On that basis Mr Justice Sanfey granted an interim injunction until further order of the court.
The dramatic events relate to a loan from Novellus Finance in 2023 with registered offices at St Stephen’s Green, Dublin to Blackbird.
Mr Flatley who in court documents has an address in Monaco was guarantor and the secured property was Castlhyde. The loan repayments on the loan for Blackbird were about €66K a month.
In April 2024, according to court documents it is claimed that Novellus was told Blackbird would be redeeming the loan agreement in September .
It is claimed that the chief executive of Novellus Finance, William McManus allegedly 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 claimed that it was allegedly 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 told the court that Mr Flatley’s business if worth €200million.
The other finance company at the end of November withdrew their refinance offer.
In an affidavit to the court Michael Flatley said he was the guarantor for the loan which was secured by a mortgage and charge on Castleyhyde.
Mr Flatley said he allowed Castlehyde to be used as security in circumstances where Blackbird Film Productions required funds in the short term. From time to time over the years he said he has assisted different business ventures in securing loans by permitting Castelhyde to be used as security.
He said the nature of the film production company necessitates short term working capital expenditure.
Mr Flatley said he was appalled at the allegation that Blackbird’s loan was in default when all loan repayment were fully up to date.
He said despite the current condition of Castlehyde it is valued at €20million and he alleged that the other finance company withdrew its loan offer as an alleged direct result of alleged misstatements.
The case comes back before the court next week.
