Blackstone is backing majority shareholders Sir David and Sir Frederick Barclay against Paddy McKillen to gain control over Maybourne Hotel Group, which includes the Berkeley, Claridge’s, and the Connaught, three of London’s top hotels.
The Barclay brothers own 64% of Maybourne’s shares, while McKillen owns the remaining 36% of the shares. However, McKillan does retain some rights as a minority investor. Control of the Maybourne Hotel Group became an issue after it was found that the Barclay brothers would push through a refinancing deal.This refinancing would either see McKillen to stump up pay tens of millions of pounds to maintain his position or have his stake diluted. If McKillen has it blocked in court, the Barclays are likely to put Maybourne into administration. Blackstone’s intervention means that the issue will be resolved in the next few weeks.
