Bad news for 'bad bank'

Irish property developer Paddy McKillen has won a legal challenge against Ireland's National Asset Management Agency (Nama), complicating the running of the state-run agency, dubbed the "bad bank".

Ireland's Supreme Court said yesterday a decision to acquire €2.1 billion (1.8bn) in loans secured on Paddy McKillen's assets was not valid because it was made before Nama was legally established.

McKillen owns a large stake in the company that owns the Claridge's hotel in London, and the decision could affect its future, as foreign suitors are contemplating moves for the group.

McKillen said transferring his loans to Nama could damage his reputation.