Anglo Irish sues over Hollywood Palladium debts
Published 11/08/2010 | 08:00
An iconic music venue in Hollywood that has played host to artists from Frank Sinatra to U2 is at the centre of a major legal row after Anglo Irish Bank sought to enforce the immediate repayment of a $45m (£28m) loan that was used to acquire the building in 2007.
In court proceedings filed in California, Anglo Irish Bank claims that the joint-venture entity that bought the art-deco Hollywood Palladium has defaulted on loan repayments. The nationalised bank is demanding $45.7m in borrowings and interest.
Joint venture CFRI-NCA Palladium Venture, is controlled by Connecticut-based Commonfund Realty Investors and a California company, Newport Capital Advisors. It bought the building in 2007 for an estimated $68m (£43m). Anglo Irish Bank has filed its case against Commonfund Realty Investors, alleging that the company is liable for all the indebtedness of the joint-venture company that took on the loan, which was due to be repaid by April this year.
The complaint by the state-owned bank claims that repayments were not made on time on the $45m loan.
In May this year Anglo Irish triggered the administration of Belfast's Odyssey Pavilion business over debts of £70m.