McKillen sues over sale of Anglo loans to Barclay brothers

Friday 06 September 2013 20.20
Paddy McKillen is taking legal action over the sale of his debts to the Barclay brothers
Paddy McKillen is taking legal action over the sale of his debts to the Barclay brothers

Property developer Paddy McKillen has been granted permission to take legal action against the former Anglo Irish Bank over the sale of loans he held with the bank to the billionaire Barclay brothers.

Mr McKillen is bringing legal proceedings against Irish Bank Resolution Corporation and its special liquidators KPMG's Kieran Wallace and Eamonn Richardson, David and Frederick Barclay with an address in Monte Carlo, Monaco, and a number of companies controlled by the brothers, over the selling of loans he had held with the former Anglo bank.

Legal representatives for Mr McKillen told the High Court that they believe the Barclay brothers were seeking to buy the loans for the purpose of placing Mr McKillen in default.

The case comes against the backdrop of a battle over ownership of three London hotels, Claridges, the Connaught and the Berkely.

Mr McKillen owns a 36% stake in the hotel group, which the Barclay brothers are seeking to gain control of.

The High Court granted orders allowing Mr McKillen to sue IBRC.

Legislation relating to the winding up of IBRC states that anyone wishing to sue the former Anglo Irish Bank must first get permission from the High Court.

The court also granted permission for Mr McKillen to take proceedings against companies controlled by the Barclay Brothers located outside of this jurisdiction.