Latest news with #PaddyMcKillen
Irish Times
4 days ago
- 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
Business Post
12-05-2025
- Business
- Business Post
High Court rejects Monaghan lender's application to recover €8.8m debt from Paddy McKillen jnr
Legal High Court rejects Monaghan lender's application to recover €8.8m debt from Paddy McKillen jnr Eoin O'Hare 14:52 Úna Tighe, barrister for McKillen jnr, told the High Court that there were 'procedural irregularities' in the proceedings launched by Cabriz Finance.
Irish Times
07-05-2025
- Business
- Irish Times
Wicklow County Council acquires Magheramore lands with access to famous beach
A long-running campaign to bring an 8.6 hectare site overlooking Magheramore Beach in Co Wicklow into public ownership has been successful. Wicklow County Council announced on Wednesday that it has bought the property which includes access to the popular Magheramore Beach, after a Chinese bidder successful at a recent auction withdrew from the sale. The council said it was 'pleased' to announce the successful purchase of the 'beachfront parcel of land' which 'offers panoramic views of the beach and the Irish Sea.' The council noted the site was 'previously owned by the Columban order of sisters before being sold multiple times'. READ MORE In 2021 the site was offered for sale by auction with a guide price of €210,000. Wicklow County Council was an underbidder at the auction. The successful bidder was a company backed by Paddy McKillen jnr and Matthew Ryan , who paid a reported €700,000 for the lands. The duo's attempts to develop a €40 million surf school, accommodation, restaurant and other facilities through their company Creatively Pacific Ltd were ultimately rejected by Bord Pleanála. Creatively Pacific, a subsidiary of building firm Oakmount, had also sought approval for a resort facility that was to include a gym, cinema, bar, an outdoor pool and 48 'high-quality accommodation pods'. Following the refusal, the site was put back on the market and Wicklow County Council again emerged as the underbidder in March of this year. The successful bidder was understood to be a Chinese man who offered €613,000 for the property at a Bid X1 auction. After the successful bidder decided not to proceed with the sale, Wicklow County Council was given the opportunity to step in and acquire the property. On Wednesday the council said 'the acquisition of the land at Magheramore will guarantee continued access to the beloved beach'. Magheramore Beach is an undeveloped sandy beach between Brittas Bay and Blainroe Golf Club. It is accessed by steps down a cliffside at the end of a long laneway from a local road and is popular with day-trippers, swimmers and surfers. The beach has been used as a location for several TV shows, including Vikings, Camelot, Redwater, and Finding Joy. The beach is adjacent to the Magherabeg Special Area of Conservation and a natural heritage area.
Irish Times
07-05-2025
- Business
- Irish Times
Dean hotels lost €8.8m in year before sale to investors
The company behind the Dean chain of hotels lost more than €8.8 million in the year before Paddy McKillen jnr sold a majority stake in the group to US and UK investors. New accounts filed in Dublin by Warlington Key reveal the group generated a turnover of close to €12.8 million in the year, €6.6 million of which came from food and beverage sales. Room and accommodation revenues reached €5.6 million. Warlington Key, which Mr McKillen jnr and his business partner Matt Ryan incorporated in 2022, was used in an inter-group transaction to acquire the trading entity behind the Dean group, Holtend Ltd, in May 2023 for €13.3 million. Proceeds from the transaction, which split the Dean Group from the wider Press Up hospitality group, were used to repay the group's banking facility with Cheyne Capital, according to the most recent set of accounts for Holtend. READ MORE Cheyne Capital is the London-based alternative lender that separately acquired a 95 per cent stake in the Press Up last year after turning €25 million of debt into equity in the business. Administrative expenses at Warlington Key, including wages and salaries, topped €10.4 million in 2023, but exceptional costs of €4.5 million related to management services costs within the group dragged the company to a €3.7 million operating loss for the year. It meant that before tax, the company lost some €8.8 million, owing its lenders some €3.4 million in interest payments on its borrowings at the end of 2023. Mr McKillen jnr and Mr Ryan sold a majority stake in the Dean Hotel group to British property group Lifestyle Hospitality Capital and US investment giant Elliott Investment Management in a transaction completed in April 2024. Initially reported in late 2023, the portfolio of hotels included in the deal at the time comprised the Dean Dublin, the Mayson, the Devlin, the Dean Cork and the Dean Galway. Three other Press Up-operated hotels – the Clarence Hotel on Wellington Quay, the Leinster Hotel on Lower Mount Street, and the Glasson Lakehouse near Athlone in Co Westmeath – were eventually added to the deal, which valued the portfolio at some €355 million. Separately, Cheyne Capital last week petitioned the High Court to have an examiner appointed to Workman's Club, the former Press Up company behind some 12 venues in Dublin, including the eponymous bar and nightclub on Wellington Quay. The court heard the immediate cause of the court application was a demand from the group's financiers RELM Capital for some €4.5 million in March.
