In a ‘controversial cash call’ shareholders have provided £150 million of new equity to the company that owns some of London’s top hotels – including Claridge’s, the Connaught and the Berkeley hotels – in order to reduce the firm’s debt.
According to a report by Property Week, the Maybourne Hotel Group’s debt currently stands at £660 million.
The £150 million equity was provided by majority shareholders the Barclay brothers, who own 64 per cent of the group’s shares, and investor Paddy McKillen, who owns 36 per cent of the group’s shares, which will be used to reduce the debt.
The two parties have however been embroiled in a court dispute over the future of the five-star hotel group after McKillen alleged that the Barclay brothers attempted to push him out of the company.
He also claims the brothers used methods to build up their shareholding which may not have been in the best interest of the company.
The report further stated that the Maybourne Hotel Group is now in the process of securing a £660 million refinance for a one-year bridging loan from Barclays.
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