Belfast Telegraph

Belfast-born property magnate Paddy McKillen takes legal action against Anglo liquidators

Loan: Paddy McKillen
Loan: Paddy McKillen

By Staff Reporter

Belfast-born property magnate Paddy McKillen has launched a major legal action in the United States against the liquidators of the former Anglo Irish Bank.

The developer behind Clarendon Properties is seeking to have the former bank's bankruptcy protection in the US lifted, as he believes it is pursuing him for a €45m (£39m) loan. He states that the loan has been proven to be illegal in the criminal courts in Dublin.

The legal status enjoyed by the bank's special liquidators in the United States would allow them to seek the sum.

The case, being taken along with his business partner, Anthony Leonard, was outlined in a 33 page document filed in the state of Delaware's bankruptcy court on Friday.

The €45m (£39m) was loaned to McKillen in 2008 as part of a transaction to reduce the substantial stake that Fermanagh businessman Sean Quinn had built up in Anglo, which later became the Republic's state-owned Irish Bank Resolution Corporation (IBRC).

The legal document claims he was pressured by representatives of the lender into becoming one of the 'Map 10', a group of investors who bought shares in Anglo in 2008 under an arrangement to reduce the shareholding of Mr Quinn.

The Belfast-born property tycoon claims the decision to go after him over the loan is part of a "vendetta", after the legal action he took against the Republic's 'bad bank' Nama.

Meanwhile, the conclusion of the criminal trial of former Anglo chief executive David Drumm, who pleaded guilty to setting up the unlawful loans to the 'Maple 10', has now paved the way for civil action to proceed.

KPMG, the special liquidator of IBRC, is expected to pursue the Quinn family for €2.8bn (£2.4bn), amid allegations that Quinn family members formed part of a conspiracy to put hundreds of millions of property assets beyond the bank's reach.

Yesterday a spokesperson for KPMG confirmed: "The Quinn cases will now proceed."

Belfast Telegraph