FIVE LENDERS have offered to take over €821 million worth of lending secured on three luxury hotels at the centre of a legal battle between property developer Patrick McKillen and billionaire Barclay brothers David and Frederick.

The disclosure about McKillen and the Berkeley, Connaught and Claridges hotels was made by Mr McKillen’s spokeswoman, Breda Keena, in an interview with Bloomberg.

The issue was discussed yesterday by the board of Coroin, the company that owns the Maybourne Group, which owns the three luxury hotels. Mr McKillen has a 36 per cent share in Coroin, though the Barclays now have a majority since they control financier Derek Quinlan’s stake in the company.

The Barclays hold the £660 million (€821 million) debt on the company, following their purchase of it from the National Asset Management Agency (Nama) in 2011 – a deal Mr McKillen has strongly questioned.

Last night, it was rumoured in financial circles in London that one of the lenders is a company associated with the Qatari royal family and that it has offered funds for a cheaper rate than is being paid to the Barclays.

The Qataris were linked with Mr McKillen in earlier attempts to take full control of the group, while the High Court in London was told he had negotiated a multi-million fee for himself if that bid had succeeded. Coroin, however, declined to give any details.

“Unsurprisingly, we are not going to be making any comment on this. Coroin is after all a private company and under no obligation to disclose such information to the press.”

The future ownership of the debt, which was bought by the Barclay brothers from Nama last year, could be crucial in deciding who wins control of the luxury London properties.

It was due to be repaid at the end of September, but it was rolled over, it is understood. The Barclays could call in the debt, if they choose, to strengthen their hand in the battle with Mr McKillen, or use its existence to force a rights issue.

During the court case, which ended in a defeat for Mr McKillen, lawyers for the Barclays repeatedly made it clear the brothers believed Coroin’s debt had to be reduced significantly, suggesting it should be cut by up to £200 million.

Since then, however, the court of appeal in London has decided to accept Mr McKillen’s application to appeal several points in Mr Justice David Richards’s judgment – most notably his belief that a shareholders’ agreement was breached when Mr Quinlan ceded control of his shares to the Barclays.

However, Mr McKillen is not appealing Mr Justice Richards’s ruling where he rejected his allegations of conspiracy against the brothers, along with charges that a number of directors appointed by the Barclays to Coroin had breached their duties in law.

Mr McKillen’s legal action against the Barclays began in October 2011, when he further alleged that Nama’s sale of the debt – which it had acquired in June 2010 – to the Barclays was invalid.