McKillen refinances debt for Coroin stake

With financial support from Colony Capital, Santa Monica, California, Paddy McKillen refinanced his debt to the Irish Bank Resolution Corp.

The debt refinancing will help to secure his 36.2% stake in Coroin. Coroin is the ownership and management company for the London hotels Claridge’s, Berkeley and Connaught, and the billionaire Barclay brothers have been in a legal dispute with McKillen over control of the company.

The legal dispute has been ongoing since Ireland’s bank designated to hold underwater property loans, NAMA (National Asset Management Agency), sold more than €800 million (US$1.1 billion) of debt held by Maybourne’s parent company Coroin in September 2011. McKillen sued, alleging that as a 36% shareholder in the portfolio he was not given proper notification of the sale. NAMA officials said the short notice for Irish developer McKillen about the sale of the £660 million (US$1 billion) loan was justified as McKillen had no power to stop the transfer.