He may have properties in Argentina, California, Dublin, London, France, Germany, Dubai, Kazakhstan and elsewhere and he may be associated with U2, yachts and the Cote d’Azur, but for all that, developer and businessman Paddy McKillen is not mega-rich. Or at least not according to the Sunday Times rich-list in 2009, when he was said to be worth €75m, and for a man whose wealth is primarily associated with property including Irish property, you would be doubtful about whether his financial position had improved since 2009.
We don’t have an up-to-date direct assessment of Paddy’s wealth but we do have a reflected assessment. During the recent marathon court case in London where Paddy took on the billionaire Barclay brothers over control of three hotels, Paddy was required to disclose details of his financial standing, though the details were suppressed as this part of the hearing was held in camera. However we do know that the judge concluded in his judgement that Paddy’s financial standing was such that Paddy couldn’t afford the GBP 45-60m (€56-€75m) that Derek Quinlan’s shareholding was estimated to be worth – “the evidence as to Mr McKillen’s overall financial position is such, I find, that he could not raise a conventional term facility for this”
Paddy lost his case against the Barclays with the judgment handed down in August, and this afternoon, there is reporting that the judge has awarded all costs against Paddy and the costs are said to be about GBP 20m (€25m). Given that there were 30-40 barristers, including QCs, and solicitors stuffed into the High Court for nearly two calendar months plus there was an appeal on one point to the UK’s appeal court, you can appreciate where the money went. The judge in the case, David Richards, really wasn’t enamoured with Paddy at all, and that was reflected in the judgment itself, so it is consistent if nothing else, that the judge has put all the costs on Paddy’s shoulders.
It was revealed during the hearing that Paddy owes Anglo (or IBRC as it is now known after the merger with INBS) and Bank of Scotland (Ireland) an overall total of €370m. Paddy may also have some further borrowings controlled by NAMA. Paddy was said to be considering an appeal against the rulings in the UK.
UPDATE: 12th September, 2012. Paddy has responded to the costs judgment apparently and is still in feisty form as he says that he will appeal the judgment given in August. Legal representatives of other parties in the case (not NAMA, it should be said) have been saying beastly things about Paddy in yesterday’s costs hearing, they even brought to the judge’s attention Paddy’s understandable reaction to the judgment in August, though the judge said that “wasn’t relevant”. Before awarding all costs against Paddy!
Reblogged this on Machholz's Blog and commented:
He certainly doesn’t look worried a few million stashed away no doubt! We the taxpayers of Ireland are probably paying this super developer a salary through NAMA. Yep ! we live in a banana republic the big boys are still calling the shots and we the taxpayers are left with all the bills
You should do a little research, Paddy McKillen’s loans are not even in NAMA so why would NAMA be paying him a salary?
I dont think anyone should begrudge Paddy as he is one of the more responsible property investors. Its amazing to see the same comments made by people everytime a developers name is mentioned.
@Room 101, most of Paddy’s loans remained with the original banks after the NAMA decision in July 2011 not to acquire more of Paddy’s loans, but some had been acquired by NAMA, we don’t know the status of these loans.
Ignorance is not bliss. And you are showing yours. Paddy McKillen is not in NAMA. But empty cans make the most noise.
Depending on how this plays out he may wish they were!
NWL linked it yesterday,Cantillon in IT today had interesting perspective on it.
Doubt he will communicate via Text, ridiculous behavior by the highest paid civil servant in Ireland.
“Neil Ryan will be seconded to the Irish Bank Resolution Corporation from his current role as Assistant Secretary at the Department of Finance on 2nd October 2012. Mr. Ryan is being appointed as the Bank’s new Head of Market Solutions and will join the Bank’s Group Executive Committee (GEXCO). ”
http://finance.gov.ie/viewdoc.asp?DocID=7356
I would imagine that Paddy is in a better position today just because he took the case. Almost two years ago the Barclays were claiming almost total ownership of the hotels. Today they remain the smallest shareholders even though they are controlling Quinlan’s shares. Paddy remains the largest shareholder and the judgment clearly states that Quinlan still owns his shares.
The judgment also clarified that the pre-emption clause in the shareholders agreement is firmly in place. Paddy has the right to buy a portion of Quinlan’s shares once the pre-emption rights are triggered and this will make him the majority shareholder. His position is still very strong and the tables could certainly turn if he appeals as he did with his High Court case here against NAMA.
I also heard that the Barclays have put the Ritz on the market. They have just sold another hotel in London and they are selling a number of other assets. This tale has many chapters left I think.