Business Irish

Friday 20 April 2018

Paddy McKillen: UK court rules in favour of NAMA

NAMA said today it has redeemed a further €2bn of senior bonds, bringing it almost halfway to meeting a repayment target set under the country's EU/IMF/ECB bailout.

The fourth and largest redemption by Ireland's 'bad bank' means it has reduced its indebtedness by over €3.5bn, Reuter reports.

Its chairman Frank Daly said additional repayments were likely before the end of the year and that it is well placed to meet the €7.5bn repayment target by the end of 2013.

Separately, NAMA said a preliminary judgment given in its favour by the English Court of Appeal, in relation to a claim brought against it by property developer Paddy McKillen, meant a transaction which led to a "very substantial financial recovery" for it would be upheld.

McKillen had challenged the validity of NAMA's transfer last year of debts, run up by a consortium he was part of, to billionaire private investors David and Frederick Barclays as part of an €800m deal for loans attached to the five-star Claridges, Connaught and Berkeley Hotels in London.

While judgment is still awaited from the English High Court, on the broader issues in McKillen's case against the Barclays, NAMA said that in light of Court of Appeal's judgement, the decision in that trial cannot now affect its operations.

In a statement, a spokesperson for Mr McKillen said: "The judgment today is a small part of the main unfair prejudice and conspiracy proceedings in the High Court (in relation to which, Judgment has not yet been given) and does not lead to the automatic strike out of any other aspects of Mr McKillen's claims.

"Mr McKillen is reviewing today’s judgment and has sought leave to appeal."


Business Newsletter

Read the leading stories from the world of Business.

Also in Business