Irish Hospitality Magnate Settles Loan Dispute
Dublin, Ireland – A prominent figure in Ireland’s booming hospitality sector, Paddy McKillen Jr., has resolved a legal dispute with an investment firm over a multi-million dollar loan guarantee. The case, which involved McKillen Jr.’s personal guarantee on a £10 million loan for a major hotel and entertainment venue development in Birmingham, England, was amicably settled just before it was set to proceed to trial in the Commercial Court.
McKillen Jr., co-founder of Ireland’s largest hospitality group, Press Up, and son of renowned developer Paddy McKillen Sr., found himself embroiled in the legal action when AHG Properties Unlimited Company sought summary judgment for €1.19 million (approximately $1.3 million) – the limit of McKillen Jr.’s personal guarantee plus interest.
The original loan was intended to finance the purchase of The Central Hall and adjoining buildings, slated to be transformed into a 155-room "Dean" hotel and a 1,500 capacity event venue. The ambitious project was undertaken by Creative Cedar Ltd., a UK company where McKillen Jr. serves as a director and which is part of the wider Press Up Group.
Despite initial plans for subsequent refinancing from a separate lender, refinancing efforts reportedly fell short, leading to difficulties in repaying the loan at its maturity. This prompted AHG Properties to initiate legal proceedings.
However, the case took an unexpected turn when it was adjourned at the request of McKillen Jr.’s legal team. Upon its return to the court, counsel for AHG Properties announced, "The time had ‘borne fruit’… I’m glad to say the case had been compromised."
While the precise details of the settlement remain confidential, the resolution effectively avoids a potentially protracted and costly legal battle for both parties.
The case highlights the intricacies and financial risks associated with large-scale property development projects, even for successful entrepreneurs like McKillen Jr.
