THE HIGH Court in London has ruled against businessman Paddy McKillen in a preliminary issue arising in a dispute over the ownership of the Maybourne Hotel Group.
The court was asked to rule on whether the sale of a company that owned a 25 per cent stake in the hotels to Sir David and Sir Frederick Barclay should have triggered certain pre-emption provisions.
The brothers are seeking to get control of the hotel group but are being resisted by Mr McKillen.
Misland (Cyprus) Investments Ltd is a shareholder in the group that was controlled by Manchester businessman Peter Green and his family. It was sold earlier this year to Barclay interests.
Mr Justice David Richards has rejected the argument that this should have triggered pre-emption provisions. This ruling may in turn be appealed.
The preliminary ruling forms part of a case where Mr McKillen is claiming oppression of his minority rights.
The main case is expected to begin on March 12th.
The brothers have taken majority control of the group. They purchased the bank debt secured on the 35.5 per cent shareholding held by Irish investor Derek Quinlan.
Mr McKillen raised his stake several years ago through a cash call on shareholders, leapfrogging Mr Quinlan on the share register to become the biggest shareholder.
