McKillen entitled to limited disclosure of documents by Barclay brothers

The High Court has ordered there should be limited disclosure of documents to property investor Paddy McKillen by the billionaire Barclay brothers in advance of next month’s hearing of a challenge to the sale of hundreds of millions worth of Mr McKillen’s loans by Irish Bank Resolution Corporation (IBRC).

Mr Justice Michael White yesterday said Mr McKillen’s lawyers must be provided with discovery of communications between David and Frederick Barclay, a number of their companies, and the Department of Finance, IBRC and Nama.

These communications, between any person or entity on behalf of the Barclay interests, or any of the trustees of their family settlements, relate to the proposed acquisition by the Barclays of Mr McKillen’s loans with IBRC.

Mr Justice White said he was concerned to safeguard the bid process for sale of IBRC loans next month and if any issue arises in relation to the discovery orders he was making, the court retained the discretion to examine those documents and, if necessary, refuse to include them as part of discovery.

It was also essential that next month’s High Court trial date (March 4) of Mr McKillen’s challenge is kept in place, he said.

Mr McKillen, who last year lost his UK court battle against the Barclays for control of three luxury London hotels in the Maybourne group, seeks declarations that the Barclays are not entitled to acquire his loans personally or indirectly through other entities and that IBRC is not entitled to sell them to the Barclays.

He also seeks damages for breach of contract, conspiracy and intentional interference with his economic interest.

The claims are denied. The Barclays also opposed his application for further discovery saying it would be unduly oppressive because full disclosure had already been made as part of last year’s case in London.

Belfast-born Mr McKillen drew down a number of property loans from the former Anglo Irish Bank, now IBRC. Part of the loan facility, of around €300m, was secured on Mr McKillen’s shares in Coroin, which was the company at the centre of last year’s London High Court case.