McKillen increases repayments on loans in bid to avoid NAMA transfer
Published 03/05/2011 | 05:00
PROPERTY investor Paddy McKillen has increased repayments on his multi-billion euro loans in a bid to keep the debts away from the National Asset Management Agency (Nama).
The Irish Independent understands Mr McKillen is making extra capital repayments on the loans, which totalled some €2.1bn earlier in the year.
The owner of the Jervis Centre in Dublin is hoping that a reduction in the size of his debts will make it easier for him to make a case for keeping the loans outside of NAMA.
The news comes three weeks after the court ruled that NAMA would have to give "fair hearing" if the loans agency proposed to take over the investor's debts.
Mr McKillen has been vigorously opposing the transfer of his loans to NAMA and took a landmark case against the move earlier this year.
NAMA is expected to ask Mr McKillen to make representations to the agency over the summer. Mr McKillen hopes that if he can demonstrate significant repayments on his loans, they will no longer be treated as a "systemic" threat to the Irish banking system.
In a statement issued after the court ruling, Mr McKillen stressed that his business was "robust with quality assets" and that all its loans were "fully performing".
NAMA has argued that it is empowered to acquire both good and bad loans and that the agency's remit is to remove all major land and development loans from the banks.
It is understood that NAMA's position on acquiring Mr McKillen's loans has not changed.
A spokesman for the agency declined to comment.