McKillen ‘coy’ as to whether he bid on some of his loans

Investor Paddy McKillen is being “coy” as to whether he has bid for some of his own loans, which he is seeking to prevent being sold to the billionaire Barclay brothers, the High Court heard yesterday.

Michael Howard SC, for the Barclays, made the comment when urging Mr Justice Paul Gilligan to fix the earliest possible hearing of pre-trial applications in Mr McKillen’s action aimed at preventing Irish Bank Resolution Corporation selling €246m of his loans to the Barclays.

Several pre-trial applications were mentioned before the judge yesterday, including applications concerning discovery of documents.

Michael Cush SC, for Mr McKillen, said his understanding was the matters were not to be actually heard yesterday but, in any event, he wanted a short adjournment on grounds including his side wanted to respond to an affidavit from the Barclays.

He also indicated his side wanted documents from non-parties in the case.

Mr Howard said he opposed any adjournment but, having been told there was no judge available yesterday to hear the applications, asked for the shortest adjournment possible. A final decision on the bidding process was expected to be made in March, the time line for the litigation was already tight, and his side wanted no slippage, he said.

Mr McKillen was being “coy” about whether he bid for the loans himself, had given no undertaking for damages in this litigation, and it was the Barclays who would be disadvantaged if there was any slippage, said Mr Howard.

A final decision on the winning bid for Mr McKillen’s loans is expected to be made in March but, if the Barclays are selected, Mr McKillen’s challenge will be heard before any sale is effected.

The liquidators said if Mr McKillen wins, they will abide by the court’s decision. Subject to the Barclays winning, the case will open on Mar 4.

The proceedings come after Mr McKillen lost the final stage of his UK court battle against the Barclays for control of three luxury hotels in London.