IBRC Rejects Barclays' Debt Purchase Offers
The billionaire Barclay brothers, who are battling property developer Patrick McKillen for control of three London luxury hotels, have made repeated bids to buy his €300 million in personal debt held by Irish Bank Resolution Corporation, the Irish Times reported. Under the three-part offer, the brothers would pay €150 million for IBRC-held debts on Mr McKillen’s stake in the Berkeley, Connaught and Claridge’s hotels; £50 million for security on other debts, along with offering to return to IBRC 90 per cent of all other debts recovered from Mr McKillen. The proposal, rejected by IBRC, was first made by Barclays executive Richard Faber in December 2011 and several times since, including after the High Court in London rejected a case taken by Mr McKillen in July. The offer was refused on grounds it would make it more difficult for Mr McKillen, who has property investments ranging from London to Vietnam, to repay the €1.3 billion of corporate debt he owes the IBRC. Mr McKillen believes the focus on the Barclays’ offer to buy his debt is an attempt by them to put IBRC in a politically difficult position and, also, to damage his business interests. Read more.