A row over a financial fund's appointment of a receiver over an exclusive estate that has hosted celebrities including Michael Jackson has been settled. Businessman Desmond McGahan had brought legal proceedings where he sought an injunction restraining Mars Capital Finance (Ireland) DAC and receiver Rory Cotter of Crowe Ireland from interfering with the sale of the plaintiff's property known as Ballinacurra House , in Kinsale, Co Cork. When the matter came before Ms Justice Siobhan Stack on Thursday Edward Farrelly SC, with Keith Farry Bl, instructed by solicitor Hugh Phelan for Mr McGahan said the matter had been resolved following a mediation.
While the terms of the settlement are confidential, it is understood the plaintiff will proceed with his plans to sell the property. The defendants, represented by William Abrahamson SC, with Edward Murray, instructed by solicitor Eoin Pentony of Edward Healy LLP said they were consenting to the settlement. The matter was adjourned for several months to allow for the terms of the settlement agreement to be implemented.
In his action, Mr McGahan claimed he and his wife Lisa are the owners and operators of the property, where they also reside with their three children. He claimed that he was attempting to sell the property, which he says is his family home, for between €5.5m and €6m.
He stated that several parties are interested in acquiring the property. Mr McGahan claimed he was unable to sell the venue after Mars Capital, which is owed €2.2m by the plaintiff, appointed Mr Cotter as receiver over the property.
In the legal action, he claims that in early February, and without warning, security staff engaged by the defendants entered the property and changed the locks. For some time afterwards he claimed that several security guards resided at the property and restricted the plaintiff's access to various parts of the venue. Mr McGahan claimed the receiver had not been validly appointed.
He also claimed that the fund may seek to sell the property at a gross undervalue of some €4m. The defendants denied any wrongdoing. As a result of the receiver's appointment and security coming on the property Mr McGahan sought an injunction against the defendants, which he says he required in order to progress the sale.
The injunction, if granted, would have restrained the defendants from interfering with the sale process and would also require members of Blackwater Security, placed on the property by the defendants, to leave. The businessman claimed that in October 2023 Mars acquired the loans from another fund, Pepper Finance Corporation Ireland DAC. He claimed he had an arrangement in place with Pepper that would result in him selling the property, and repaying the loan in full, by the Summer of 2024.
He said that he has been trying to sell the property for several years, but that process has been delayed due to various factors, including a serious illness that he suffered. It was further delayed because in 2021 Pepper lost the deeds of property, which resulted in a proposed €7m sale falling through. He claimed that by appointing Mr Cotter, Mars was attempting to breach and circumvent the agreement reached with Pepper, in order to achieve a quick sale.
The plaintiff's claims were all rejected by the defendants, and they had opposed the application for the injunction. The property has been used for events, weddings, and has been rented to many famous people including European royalty, A-list actors, politicians, businesspeople, and musicians. The well known late singer Michael Jackson and his three children in 2007 for three weeks.
In 2017 it was selected as Ireland's wedding venue of the year..
