We study the restriction to a family of second class constrained submanifolds in the cotangent bundle of a double Lie group, equipped with a 2-cocycle extended symplectic form, building the corresponding Dirac brackets. It is shown that, for a 2-cocycle vanishing on each isotropic subspaces of the associated Manin triple, the Dirac bracket contains no traces of the cocycle. We also investigate the restriction of the left translation action of the double Lie group on its cotangent bundle, where it fails in to be a symmetry a canonical transformation. However, the hamiltonian symmetry is restored on some special submanifolds. The main application is on loop groups, showing that a WZNW-type model on the double Lie group with a quadratic Hamilton function in the momentum maps associated with the left translation action on the cotangent bundle with the canonical symplectic form, restricts to a collective system on some special submanifolds. There, the lagrangian version coincides with so called Poisson-Lie