Oct. 12 (Bloomberg) -- Patrick McKillen, who holds 36 percent of Maybourne Hotels Ltd., sued fellow shareholders David and Frederick Barclay in a dispute over a deal involving the landmark London hotel operator’s debt.
McKillen is also suing Maybourne Finance Ltd., the company that the Barclays used to acquire 800 million euros ($1.1 billion) of the hotel group’s debt last month, according to an Oct. 5 filing in London’s High Court.
“We are taking this action to protect our shareholding,” said Breda Keena, a spokeswoman for McKillen, in an e-mailed statement. She declined to comment further.
Maybourne Hotels owns the Berkeley, Claridge’s and Connaught luxury hotels in the U.K. capital. Two Irish banks loaned 800 million euros to fund the acquisition of the hotels in 2005. Ireland’s National Asset Management Agency acquired the loans from the banks in June 2010, according to a statement by NAMA. It then sold them to the Barclays, the billionaire owners of London’s Daily Telegraph newspaper.
The Barclay brothers declined to comment through spokesman Max McGahan.
Maybourne’s parent company, Coroin Ltd., was due to repay 660 million pounds ($1.04 billion) to NAMA on Sept. 30. A new loan had been agreed to on April 1 and was to be renewed each quarter “subject to NAMA’s consent,” according to regulatory filings by Coroin this month. The deal for the loans was announced on Sept. 29.
McKillen released a statement following the announcement of the Barclays’ loan purchase that he remained Maybourne’s largest shareholder with 36 percent.
The suit also names Misland (Cyprus) Investments Ltd., which was bought by the Barclay brothers in January and owns about 25 percent of Coroin. McKillen is also suing Coroin directors Richard Faber, Michael Seal and Rigel Mowatt as part of the case.
Faber, Seal and Mowatt couldn’t immediately be reached for comment.
The case is: McKillen v. Barclay & Ors., case no. HC11C03437, High Court of Justice, Chancery Division (London).
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