IRISH INVESTOR Patrick McKillen has lost a High Court move to widen his legal claim against the twin billionaire Barclay brothers over the ownership of three landmark London hotels.
The Belfast-born developer has taken legal proceedings against Sir Fredrick and Sir David Barclay, the owners of the Telegraph group, after he claimed the brothers impinged on his rights as a shareholder and director in a company that owned iconic hotels Claridge’s, the Berkeley and the Connaught.
In the middle of the long-running trial, lawyers for Mr McKillen made an application to add two further claims to their case against the brothers and associated companies.
Lawyers for Mr McKillen argued that when the brothers purchased 24 per cent of £1 billion holding company Coroin from the Green family, they acted in a way to block the hotel company from refinancing “save in the way that would enable the Barclay brothers’ interests to take control in the company”.
Philip Marshal QC said a document produced on behalf of former shareholders the Green family when they sold their company Misland, which owned 24 of Coroin, to the brothers in January last year indicating the twins could refinance the company in such a way as to dilute other shareholders’ stake in it.
He said the document was only disclosed a week after the case started last month.
However, Mr Justice David Richards at London’s High Court Justice yesterday refused the application, ruling the document was part of a sales pitch from a potential seller to a buyer to make the purchase seem more attractive.
He said the document in itself did not indicate a conspiracy between the Barclays and the Green family to obstruct refinancing of Coroin.
“I’m going to refuse the application for an amendment,” Mr Justice Richards added, “but that is not to say the document can’t be referred to in Mr McKillen’s existing case and make of it what they will.”
A second application related to former Barclay brother-appointed Coroin director Richard Faber who, Mr McKillen claims, breached his fiduciary duties as a director in the company.
It was alleged Mr Faber had contacted the National Assets Management Agency, urging it not to extend Coroin’s loan facility for £660 million debt late last year.
A Barclay brothers-controlled company bought Coroin’s debt from Nama last September.
Mr Faber was cross-examined for three days earlier in the trial. Mr Justice Richards ruled it would be “contrary to the interest of justice” if a new allegation was made against Mr Faber after he had taken the stand.
He said: “We have a tradition here where an allegation is made and the respondent has a chance to answer the allegation through their evidence-in-chief.”
Two Nama officials are expected to give evidence tomorrow to defend the agency’s decision to sell Coroin’s £660 million debt to the Barclay brothers late last year.
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