Business Irish

Friday 20 September 2019

McKillen appeals US court block on bid to sue IBRC liquidators

Developer Paddy McKillen
Developer Paddy McKillen
John Mulligan

John Mulligan

Property developer Paddy McKillen and his business associate Anthony Leonard are appealing a decision by a US court not to grant them permission to sue the liquidators of Irish Bank Resolution Corporation (IBRC), formerly Anglo Irish Bank.

Last month, a Delaware court denied the two men and their firm, Clarendon Properties, permission to take legal action against liquidators Kieran Wallace and Eamonn Richardson in relation to the €45.1m loan Mr McKillen had taken from Anglo as one of the so-called Maple 10.

The Maple 10 was a group of Anglo Irish Bank's top borrowers who were given loans by the institution in 2008 to buy shares in the bank as Sean Quinn unwound his disastrous stake-building in Anglo.

Mr McKillen, Mr Leonard and Clarendon Properties had sought permission in the Delaware court to sue for redress for what they claimed was harm done to them in the United States by the actions of the IBRC liquidators in pursuing Mr McKillen for repayment of part of the Maple loan.

In 2014, IBRC sued Mr McKillen in Ireland to recover 25pc of the loan that had been extended to him in 2008 to buy the Anglo stake. The loan had been issued with 25pc recourse to Mr McKillen.

Mr McKillen and Mr Leonard turned to the US court to fight those efforts.

The pair's lawyers told the US court that the continuing pursuit of Mr McKillen by the liquidators for the 25pc of the €45.1m loan has had a "chilling effect" on his, Mr Leonard's and Clarendon's access to capital markets in the United States.

But the bankruptcy court judge denied them permission to sue the IBRC liquidators.

Irish Independent

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