Belfast Telegraph

Friday 25 July 2014

Anglo Irish sues over Hollywood Palladium debts

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.

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