An American company linked to the wealthy American Getty family has claimed that it is entitled to one of the most valuable parts of Punchestown racecourse due to a controversial deal involving the "passports for investment" scheme."
In the latest twist to the long-running saga over the control of the racecourse, the company GT Equinus has threatened legal action to take control of more than 10 hectares (25 acres) at the racecourse unless moves are made to repay a loan of nearly €4 million.
The loan was made in 1999, in return for three passports for members of the Getty family. GT Equinus is controlled by the Getty family trust.
The firm claims that the loans to the racecourse in 1999 were secured on 25 acres of development land at the edge of the 450- acre site, which is now believed to be worth upwards of €20 million.
However, the Kildare Hunt Club, which owns the racecourse, has claimed it was never informed of this clause by the racecourse's management at the time. The club has also claimed that the clause is contrary to the guidelines of the passports for investment scheme, which stipulates that investments cannot be secured against the assets of the company receiving the money.
In a letter to the racecourse's holding company, Blackhall Racing, GT Equinus said it would "enforce the legal obligation" relating to the land "through legal action unless payment in full is made or alternative arrangements satisfactory to us are put in place within 30 days".
The deal was one of the last approved by the Government in 1999 before it moved to close off the passports scheme.
It was at the centre of controversy in the early 1990s over a number of deals, including one involving former justice minister Ray Burke and former taoiseach Charles Haughey, who helped arrange eight passports for the family of Sheikh Khalid bin Mahfouz in 1990.
In 2002 it was revealed that the racecourse was on the brink of liquidation. Since then members of the hunt club have been involved in a dispute with Horseracing Ireland over how to resolve the financial situation and the issue of control of the racecourse.