Paddy McKillen versus NAMA redux, opens in London tomorrow

In Court 26 of the Royal Courts of Justice in London at 10.30am tomorrow, Paddy McKillen will face his latest legal opponents – on the one hand, the Barclay brothers whose avowed intention is to take control of Paddy’s Maybourne group of hotels and on the other, NAMA which sold €800m of loans in the Maybourne hotel group to the Barclay brothers in September 2011. And unlike Paddy’s separate legal battle which concluded in Dublin’sSurpreme Court last year,  Paddy is set to turn up in person and take to the witness stand, which means that the elusive property investor will at last be unmasked and we’ll have something to replace the question mark above.

There have already been two preliminary judgments in this case, most recently at the start of February 2012 when Paddy won an important judgment which allows him to challenge the way in which NAMA sold the loans last September 2011. NAMA seems peripheral to Paddy’s fight at present in which he is trying to keep control of the Maybourne group, whose main assets are three 5-starLondon hotels – Claridges, the Connaught and theBerkeley. The Barclay twins who control Britain’s Daily Telegraph and the Ritz hotel on Piccadilly are trying to wrest control of the Maybourne group and they have so far apparently acquired Kyran McLoughlin’s and the Green family’s shareholdings.

And then there is tax inspector turned property magnate turned consultant, Derek Quinlan who was a shareholder/borrower at Maybourne and is himself expected to play a part in these present court proceedings and is set to take to the witness stand at the end of this month.

Expect a titanic battle between an irresistible force and twin immovable objects. NAMA may face damages – there was a speculative estimate of €50m going aroundLondonin February – if it is found to have wrongfully disposed of the loans last September 2011 and it may also face the reversal of its biggest transaction to date. There will be detailed updates on here during the week.

The case reference is 8690 of 2011, the case will be heard by Mr Justice David Richards and is scheduled to start at 10.30am tomorrow in Court 26 of the Royal Courts of Justice on the Strand inLondon.