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Barclay Brothers win Maybourne Group case

By James Russell: Barclay Brothers win Maybourne Group case

July 4, 2013

Patrick McKillen has lost his appeal in his long-running struggle with the billionaire Barclay Brothers over control of three of London’s most famous hotels – Claridge’s, The Connaught and The Berkeley. The Barclays also own The Ritz Hotel in London.

The Court of Appeal has dismissed McKillen’s appeal against last year’s High Court ruling stating that the Barclay family “have always acted entirely lawfully” in relation to the £1bn Maybourne Hotel Group.

The case related to the Barclays’ actions in trying to gain control of Coroin, the vehicle that owns Maybourne. They first acquired  28.4% of Coroin in 2011, then buying Irish investor Derek Quinlan’s debt – held by Ireland’s bad bank NAMA –  which gave them control of the Maybourne Group.

McKillen, who owns 36.2%, claimed he had the right to buy Quinlan’s shares.

In losing the case, he also had costs awarded against him, and is now expected to have to pay up to £18.7 million costs against the High Court and Court of Appeal legal proceedings.

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