Latest news with #PaddyMcKillen
Irish Times
3 days ago
- Business
- Irish Times
McKillen jnr sues receivers over taking possession of three properties
Paddy McKillen junior is in a dispute with receivers who took possession of three valuable Dublin office properties, allegedly due to millions of euro in rent arrears on them. Perfect Stripe Ltd, trading as Grafter, is suing Ken Fennell and Brendan O'Reilly, of Interpath Advisory, who were appointed joint receivers over three companies which rented the properties at Stephen's Green, Leeson Street and Ely Place from Perfect Stripe. The three companies, Wonderbay Ltd, Crossville Properties Ltd and Discovery Dawn Ltd (all in receivership) were McKillen group-related firms. Perfect Stripe claims that on the morning of June 23rd, agents of the receivers broke into the properties having unlawfully purported to have forfeit the leases. The locks were changed and Perfect Stripe and its agents were prevented from gaining access. The claim of breaking in is denied. READ MORE The purchase of the buildings was funded largely through loans from RELM Loan Opportunities DAC, which appointed the receivers after calling in the loans. Perfect Stripe says the forfeiture happened despite discussions with the defendants about rent adjustments. It believed the parties were negotiating in good faith and that no steps would be taken towards any enforcement until those negotiations concluded. The defendants claimed the sums due on each of the properties in rent arrears at the time was some €2.7 million for Stephen's Green, around €321,000 for Ely Place and some €530,000 for Leeson Street. Perfect Stripe, in its statement of claim, says the defendants have unlawfully forfeited the properties 'under the guise of seeking inflated amounts in excess of the interest due' under the loan agreements. It also says they have 'misappropriated the plaintiff's business in order to achieve a higher sales price for the properties'. On Monday, Mr Fennell and Mr O'Reilly, in their capacity as receivers of the three defendant companies, applied to have the dispute admitted to the fast track Commercial Court. James Doherty SC, for the defendants. said the total debt now due in arrears was in excess of €4.1 million and the leases were forfeited and possession taken some five weeks ago. Counsel said there was mediation for a short time which was unsuccessful. The claim of misappropriation by the defendants of the business to themselves is 'wholly without foundation', he said. Counsel also disputed a claim by Marcus Dowling SC, for Perfect Stripe, that from his client's perspective, what had happened was the receivers agents breaking into the premises in the middle of the night. Mr Dowling said his side was neutral on the application to admit the case to the commercial list. Mr Justice Mark Sanfey said it was clearly a matter suitable for entry to the Commercial Court. He approved agreed directions and adjourned the matter to later this year.
BreakingNews.ie
3 days ago
- Business
- BreakingNews.ie
Paddy McKillen jnr in dispute with receivers over Dublin office properties
Businessman Paddy McKillen junior is in a Commercial Court dispute with receivers over the taking possession of three valuable Dublin office properties allegedly due to millions owed in rent arrears on them. Perfect Stripe Ltd, trading as Grafter, is suing Ken Fennell and Brendan O'Reilly, of Interpath Advisory, who were appointed joint receivers over three companies which rented the properties, at Stephen's Green, Leeson Street and Ely Place from Perfect Stripe. Advertisement The three companies, Wonderbay Ltd, Crossville Properties Ltd, and Discovery Dawn Ltd (all in receivership) were McKillen group-related firms. Perfect Stripe claims that on the morning of June 23rd last, agents of the receivers broke into the properties having unlawfully purported to have forfeit the leases. The locks were changed and Perfect Stripe and its agents were prevented from gaining access. The claim of breaking in is denied. The purchase of the buildings was funded largely through loans from RELM Loan Opportunities DAC who appointed the receivers after calling in the loans. RELM began calling in the loans and Perfect Stripe says that the forfeiture happened despite discussions with the defendants about rent adjustments. Advertisement It believed the parties were negotiating in good faith and no steps would be taken towards any enforcement until the negotiations concluded. The defendants claimed the sums due on the properties in rent arrears at the time was some €2.7 million for Stephen's Green, around €321,000 for Ely Place and some €530,000 for Leeson Street. Perfect Stripe, in its statement of claim, says the defendants have unlawfully forfeited the properties "under the guise of seeking inflated amounts in excess of the interest due" under the loan agreements. It also says they have "misappropriated the plaintiff's business in order to achieve a higher sales price for the properties". Advertisement On Monday, Mr Fennell and Mr O'Reilly, in their capacity as receivers of the three defendant companies, applied to have the dispute admitted to the fast track Commercial Court. James Doherty SC, for the defendants, said the total debt now due in arrears was in excess of €4.1 million and the leases were forfeited and possession taken some five weeks ago. Ireland Man (37) repeatedly stabbed ex-partner after putti... Read More Counsel said there was mediation for a short time, which was unsuccessful. The claim of misappropriation by the defendants of the business to themselves is "wholly without foundation", he said. Counsel also disputed a claim by Marcus Dowling SC, for Perfect Stripe, that from his client's perspective, what had happened was the receivers' agents breaking into the premises in the middle of the night. Mr Dowling said his side was neutral on the application to admit the case to the commercial list. Mr Justice Mark Sanfey said it was clearly a matter suitable for entry to the Commercial Court. He approved the agreed directions and adjourned the matter to later this year.
Irish Times
13-06-2025
- Business
- Irish Times
Eclective to open its first new bar and restaurant since change of ownership at Press Up group
Irish hospitality group Eclective, formerly known as Press Up , has signed a long-term lease for the former site of Farrier & Draper on South William Street in Dublin 2. This will be its first new venue since the change of ownership last year that resulted in investment firm Cheyne Capital taking control of the business from its founders Paddy McKillen jnr and Matt Ryan. It is understood that Eclective has agreed a 15-year lease for the site with Clarendon Properties, and will spend up to €1.5 million fitting out the 6,000 sq ft venue over three floors. The bar and restaurant in the Powerscourt Townhouse Centre was previously operated by industry veteran Frank Gleeson. READ MORE Eclective plans to open a cocktail bar on the ground floor of the building, a cheese and wine salon on the first floor, (comprising a wine bar and a retail element), and a 40-seat restaurant at basement level. [ Eclective ditches previous Press Up plan to open a Stella Cinema in Bray Opens in new window ] The cocktail bar, and the cheese and wine area are scheduled to open before Christmas, with the restaurant slated for a mid-2026 launch. It is expected that about 40 full and part-time staff will be employed at the venue, which has yet to be given a new name. Millimetre Design, an interior design studio, will lead the fit-out. Commenting on the lease agreement, Tristan Jacob, chief commercial officer of Eclective, said : ' We are excited to develop a new premium, modern hospitality concept in the city centre. Housed within the historic Powerscourt Townhouse, we plan to invest significantly to deliver a sophisticated venue to the capital's hospitality scene.' This will be Eclective's 27th venue, with the group employing 850 people. Other brands in its portfolio include Elephant & Castle, Wowburger, Stella Cinema, Kaldero and Captain America's. At the time of the restructuring last September, it was announced that the Wowburger venue on Parnell Street in Dublin would close. The Wagamama restaurants at Dundrum and South King Street in Dublin also both shut. The South King Street site was subsequently reopened by Eclective under the Kaldero brand. In March, it emerged that Eclective had handed back the lease on a site in Bray that was earmarked for a Stella Cinema. Press Up was cofounded by Mr McKillen jnr and Matt Ryan and grew to more than 50 venues and about 2,000 employees, including a chain of hotels that were sold in 2023. London-based Cheyne took control of the business last year following a debt-for-equity swap. Mr McKillen jnr continues to own 5 per cent of the chain.
Irish Times
04-06-2025
- Business
- Irish Times
Workman's Club examinership extended to July 10th after good progress to ensure survival
The High Court has extended the examinership of the Workman's Club Ltd in Dublin, part of the former Press Up hospitality and entertainment group, after hearing efforts to ensure its survival are progressing well. Ms Justice Eileen Roberts said on Thursday she was satisfied to extend the examinership to July 10th following submissions from barrister Declan Murphy, for the examiner, Declan McDonald of PwC. It seemed good progress was being made with a fully funded-proposal investor, the judge said. As the examiner had expressed the view the company has ability to trade until July 10th, she would extend the examinership until then, the judge said. READ MORE [ High Court confirms appointment of examiner to Workman's Club Ltd Opens in new window ] Mr Murphy earlier told the court that matters had proceeded 'more speedily than is ordinarily the case but we don't want to jinx it'. If a successful scheme of arrangement is proposed and voted on, the examiner would notify the court and a date can be set for a hearing, he said. The judge wished the examiner luck with his engagement in the weeks ahead. Press Up was founded by businessmen Paddy McKillen junior and Matthew Ryan. It was renamed the Eclective Group last February following its take over and running by Cheyne Capital. [ Workman's Club heyday: Where we rubbed shoulders with Paul Mescal, Fontaines DC and Morrissey Opens in new window ] Press Up, at its height, operated some 50 bars, restaurants and hotels with 1,600 employees. It now operates 12 Dublin venues, including Peruke and Periwig on Dawson Street, Doolally on Richmond Street, and the Workman's Club on Wellington Quay. It has 55 full time employees out of a total of 362. When the application to appoint an interim examiner was made early last month, the court was informed the company has an excess of liabilities over assets and is unable to pay debts as they fall due. In October 2021, the group was refinanced to the tune of €55.5 million by Cheyne Capital and deleveraging began with the selling off of the hotels in the group, the Dean and Clarence, the court petition stated. Full deleveraging did not take place and Cheyne took over management in July 2024 when it says it discovered depleted stock levels, substantial arrears to suppliers, deferred maintenance and limited reinvestment. It was decided four of its operating entities would enter receivership so the core business and a broader restructuring could take place, along with an injection of new money from Cheyne which took 95 per cent of the group's shareholding in a debt for equity swap and installed its own management team.
Irish Times
17-05-2025
- Business
- Irish Times
Paddy McKillen's billion-pound legal battle over Claridge's hotel reaches ‘high noon'
A three-person arbitration panel convened privately in London this week to try to resolve a dispute over Claridge's hotel that forms the centrepiece of one of the most acrimonious, and potentially lucrative, legal battles of the past decade. On one side is Paddy McKillen , the wealthy Irish property developer who owns a whiskey distillery with U2 star Bono. On the other, Sheikh Hamad bin Jassim bin Jaber al-Thani, the billionaire former prime minister of Qatar known as HBJ. McKillen claims he is owed up to £1 billion (€1.2 billion) for his work at three of the world's most glamorous hotels – Claridge's, the Connaught and the Berkeley – all located in rarefied central London postcodes. McKillen, 70, and HBJ, 66, were once close allies, spending time together on yachts and in swanky hotels. But this week's arbitration is unfolding amid a bitter legal battle, spanning at least a dozen claims and disputes in Europe and the US, between the former friends and their associates. READ MORE Three arbitrators – one chosen by each side, and a third chosen by the other two, according to those familiar with the terms – will now decide who emerges claiming victory. [ Irish businessman Paddy McKillen claims he is victim of 'smear campaign' by Qatari royal family Opens in new window ] While sources said it may take as long as two months for a decision to be reached, a resolution to a dispute that began three years ago may now be in sight. 'It's high noon,' said one person close to the process. Claridge's – the 169-year-old luxury Mayfair hotel that was a favourite of Queen Elizabeth II – is the crown jewel in a multibillion-pound portfolio of high end London properties owned by Qatar and wealthy members of its ruling family. Belfast-born McKillen, who went into property in the 1980s after a stint working in his family's exhaust repair business, first invested in Claridge's in 2004. His investment came under threat in the wake of the 2008 financial crisis, when the Barclay brothers tried to seize control of Claridge's, the Connaught and the Berkeley, now known collectively as the Maybourne Hotel Group . McKillen secured Qatari backing to help resolve his legal battle with the Barclays, former owners of the Telegraph newspaper. The 2015 rescue saw HBJ and the former Qatari emir, Sheikh Hamad bin Khalifa al-Thani (HBK), take full control of Maybourne in a £1.3 billion deal that resolved McKillen's legal case, wiped out his debts and reduced his equity in the hotels to zero. The Qataris subsequently agreed to an unconventional deal that McKillen hoped would allow him to share in the future upside of the hotels. Under the terms of the seven-year contract, McKillen's business, Hume Street Management Consultants (HSMC), would refurbish, manage and extend the hotels. The deal granted McKillen 36 per cent of any subsequent increase in valuation across the three hotels, minus the costs of the work. But his involvement in the hotels – due to end in December 2022 – was cut short in April of that year, when McKillen was unexpectedly told by the Qataris he would no longer be working for them. The size of McKillen's unpaid earnings from this arrangement sit at the heart of the dispute playing out this week in London. McKillen argues that the extensive refurbishment work at Claridge's – which included adding an opulent underground spa and a £60,000-per-night penthouse suite, replete with 75 Damien Hirst artworks – has helped substantially boost Claridge's value. The developer argues that those improvements, allied to a buoyant luxury hotel market post-Covid, means his payout should be in the hundreds of millions. However, sources close to the Qataris claim the significant costs of work at the hotels means McKillen is owed substantially less than he claims. Even so, those close to the Qataris acknowledge McKillen is still owed something. One person with knowledge of the dispute said that given the baseline value of £1.3 billion, and about £600 million-£700 million in costs, any valuation above £2 billion would mean McKillen is entitled to 36 per cent of the upside thereafter. Estimates being talked about by advisers have varied between less than £3 billion to over £5 billion, according to one person with knowledge of the situation, which would equate to a payout of more than £1 billion at the top end. There have been attempts at mediation, according to one person with knowledge of the situation, with the most recent taking place in autumn 2023, after McKillen withdrew an attempt to extend the claim over a number of newer luxury hotels in the US and France, leaving the focus on the original three sites in London that had been the portfolio over the seven-year period. In the meantime, the two sides appear to have been waging commercial lawfare. Claims and counterclaims have been filed across multiple countries, relating to developments owned by HBJ, or his associates and companies connected with them, on which McKillen claims refurbishment or development work. People familiar with the Qataris' position claim McKillen thought he could 'embarrass' them into striking a deal by filing lawsuits that generated headlines and scrutiny of the complex ownership structures that often lie behind property acquisitions. They point to some of the victories secured so far in courts over McKillen. McKillen's side argues the Qataris have been equally aggressive in their attempts to get him to back down from the Claridge's dispute. Representatives for McKillen and the Qatari owners of Claridge's declined to comment on the confidential arbitration process. In a statement, a spokesperson for McKillen said: 'It is right that he has taken, and will continue to take, all necessary steps to enforce his rights. As Mr McKillen has made clear over the four-year period since his departure from the Maybourne Hotel Group, he will not be deterred by any attempted campaign to cause damage to his business interests or smear his reputation.' The Financial Times has identified a dozen legal clashes between the two sides – mainly in the UK, France or the US – often seeking money for work that McKillen and his companies say has been carried out for the Qataris and associated groups. Work for which McKillen claims he has not been paid. Other cases have been started by the Qataris, which claim McKillen used Maybourne contractors, paid for by Maybourne, to undertake work at his hotel in France last July. McKillen denies the allegations. The cases involve luxury properties, including hotels on the French Riviera and in Paris and Bel-Air, California, and homes in Manhattan and London. McKillen is claiming tens of millions of pounds of unpaid fees. In March, a high court judge in the UK prevented McKillen's HSMC from serving a £3.7 million claim outside England, in a dispute over fees for work at Forbes House, a grade II listed mansion in Belgravia, bought by HBJ in 2016. HSMC has appealed against the ruling and is seeking renewed permission to serve proceedings. McKillen has started new proceedings in his own name. Separately, McKillen was convicted this year of verbally assaulting a female bailiff in his apartment on the Place Vendôme, a grand public square in Paris. The bailiff had entered his property with a locksmith in a dispute over mortgage repayments to a Qatar-owned private wealth manager. McKillen is appealing against the decision. He denies any violence or wrongdoing, has filed an ethics complaint before the Paris disciplinary chamber of bailiffs, and his lawyers have in the past described the case as 'part of a more general smear campaign' against him. Most recently, in April, McKillen filed a lawsuit in a California district court alleging that HBK and HBJ, as well as several of their business associates and related companies, sought to defraud him. He alleges they did not pay for his firm's work at a number of properties which are already the focus of other cases, using the Racketeer Influenced and Corrupt Organizations (RICO) Act. Qatar has denied the claims. 'Paddy McKillen and associated parties have orchestrated claims across multiple jurisdictions, all of which are either ongoing or have been struck out by the courts. We will continue to contest these claims and prove the assertions and allegations to be unsubstantiated and entirely false,' said a spokesperson for Maybourne. The latest case under the RICO act adds to a long and costly list of lawsuits. However, the hundreds of millions of pounds at stake in the Claridge's arbitration is the real prize for both sides. The sight of expensive tabs being quietly settled is a familiar one in the hotel's luxurious bars and restaurants. With the panel of arbitration in London totting up how much the Qataris owe McKillen, the owners of Claridge's will soon find out just how large their own bill will be. – Copyright The Financial Times Limited 2025
