The Four Courts: a property investment finance company is seeking judgment for €1.19 million in the Commercial Court against businessman Paddy McKillen jnr over a guarantee he gave on the loans to buy a property in England for development as a 155-bed hotel and 1,500 capacity venue. Photograph: Bryan O'Brien/The Irish TimesA property investment finance company is seeking judgment for €1.
In an affidavit seeking admission of the proceedings to the Commercial Court, AHG director Tony O’Shea said Mr McKillen jnr had provided a personal guarantee, limited to €1 million plus interest, on loans totalling €10 million to buy The Central Hall and adjoining buildings in Corporation Street/Ryder Street, Birmingham. The plan was to redevelop it as a 155-bed “Dean” hotel with a 1,500 capacity event venue.
However, Mr O’Shea said, as the final repayment date approached on December 30th, 2023, Creative Cedar sought an extension to April to allow for discussions regarding the potential refinancing of the AHG facility. The meeting took place at the 22 Club in Grosvenor Square on July 10th last. Mr McKillen jnr was in the US for reasons that were explained by his father, Mr O’Shea said.
There followed further correspondence and a meeting Mr McKillen jnr after which AHG advised the defendant it was reserving its rights under the loan agreement and evaluating enforcement options.