McKillen hangs onto Maybourne stake

Irish developer Paddy McKillen retained his 36% stake in Maybourne Hotel Group after a cash call that saw him and his rivals for the company, the billionaire Barclay brothers, raise £150 million (US$242 million).

After a court battle over the past year, the Barclay brothers now control a 64% stake in the company, which includes Claridge’s, the Connaught and the Berkeley in London. Had McKillen not come up with the £55 million (US$89 million) for the rights issue, his stake would have been diluted to 25%.

The company will use the money to pay down debt while setting up a new debt facility to refinance a £660 million (US$1 billion) bridging loan from the Barclays bank.