Developer Paddy McKillen loses challenge to Nama

A Belfast-born developer has failed in a legal challenge to the Republic's National Assets Management Agency.

Paddy McKillen, who has loans of more than 2bn euros from Irish banks, argued his business would be damaged if his loans were transferred to Nama.

He also said that the agency had denied him fair process.

However, the Commercial Court in Dublin dismissed his claim, ruling Nama was a proportionate response to the grave situation the state finds itself in.

Nama was set up following the banking crisis and is taking over all major development loans from Irish banks.

One of Mr McKillen's companies, the Maybourne Group, owns some of London's most prestigious hotels, including Claridges and the Berkeley.

At an earlier hearing, Mr McKillen's lawyer, Shane Murphy, told the court his client was continuing to make interest repayments on all his loans, no default notices had been issued by the banks and even loans that had expired had been assessed by Nama as performing.

The Irish state argued that the challenge was a very real threat to the vital work of Nama and is of enormous economic significance.

It said five banks participating in Nama have an exposure of 2bn euros in total to Mr McKillen.

Although Nama is thought of as a way of removing "toxic" loans from the banks, it is also taking over good or "performing" loans - those which are being repaid and earning money.