Property developer Paddy McKillen has refinanced debts previously owed to Anglo Irish Bank with a loan from the California-based investment firm Colony Capital.

The Belfast-born property developer issued a statement saying he had agreed terms with the special liquidator of the Irish Bank Resolution Corporation to pay off his debt.

The loan from Colony Capital is secured on Mr McKillen's stake in Coroin, a company which owns and manages three luxury hotels in London. 

The book value of Mr McKillen's outstanding loans was €800m including debt owed by various companies controlled by him and €260m in personal loans secured on his stake in Coroin.

Mr McKillen has been engaged in a long-running legal battle with his fellow shareholders in that company, the UK-based Barclay brothers. The Barclays had bid on Mr McKillen's Anglo debt in an attempt to gain control of his stake in Coroin, which operates Claridge's, The Connaught and The Berkeley Hotel in London.

"Today's deal takes my stake in the hotels firmly out of the reach of the Barclay Brothers," Mr McKillen said. "I am especially keen to bolster my ongoing efforts to take rightful control of Coroin and finish the development job to which I committed so many years ago".