Business Irish

Tuesday 21 November 2017

Anglo sues over loan to 'Sound of Music' foundation

EMMET OLIVER

Nationalised lender Anglo Irish Bank is taking legal action against one of the world's most famous musical partnerships in a row over a $45m (€31m) loan for a building in Manhattan.

Anglo has named a division of Rodgers and Hammerstein as a defendant in an action over missed payments on the loan which was originally agreed in May 2007.

In legal documents, seen by the Irish Independent, Anglo claims it now has a right to call in the entire loan, plus interest payments and also have its legal costs covered.

The Rodgers and Hammerstein Foundation is among a group of defendants named in documents lodged in court in New York before Christmas.

Leases

Anglo claims Rodgers and Hammerstein are among a group of firms with long-term leases at the 12-storey building at 229 West 28th Street.

Rodgers and Hammerstein, named after Richard Rodgers and Oscar Hammerstein, are one of the most famous song-writing duos in US history, penning such Broadway classics as 'Oklahoma!', 'South Pacific' and 'The Sound of Music' and a made-for-TV version of 'Cinderella'.

The defendants in the case, Rodgers and Hammerstein Foundation, hold the rights to images and productions associated with the two famous songwriters.

Anglo is now seeking a foreclosure on the property and an end to the loan agreement. The bank, which has been very active in the US in recent years, wants to appoint a receiver to the property. The bank claims the company it signed the original loan agreement with, 229 West 28th owner LLC, stopped making interest payments on October 15 and the bank now has the right to call the full loan in. Rodgers and Hammerstein have space on floors 10 and 11 of the 12-storey building, which consists of 153,913 sq ft.

Anglo Irish Bank has been taking a large number of legal actions in New York in recent months as a slump in the New York office market takes its toll on financiers.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business