The parent company of iconic London hotels the Berkeley, Claridge’s and Connaught is expected to seek a £660 million refinancing following the end of a court battle between its two main shareholders.
The High Court case between the Barclay brothers and Irish property developer Paddy McKillen ended on Friday when the judge dismissed the latter’s claims that his rivals used ‘dishounourable’ means to grab control of the Maybourne Hotel Group.
Quoting a source, the Sunday Times said now the case has been decided the Barclays will refinance its £660 million debt, which they bought from Irish bank Nama, through a special find called Maybourne Financial Limited.
The paper quoted the source as saying the plan is to avoid the group going into administration and will involved existing shareholders pumping £150 million to £120 million of fresh capital into the group.
McKillen, who is Maybourne’s largest shareholder with 36%, could appeal the High Court decision.
The Sunday Times quoted a source close to McKillen who said he would not be forced to sell his stake and would find the cash to ensure his investment in the group is not diluted if there was a share issue.