Irish developer Paddy McKillen has won a legal challenge to stop the country's bad bank structure, National Asset Management Agency (NAMA), taking control of EUR 2.1 bn in loans, Irish media reported on Thursday. The Supreme Court overturned an earlier ruling that NAMA could acquire the loans owed by the property investor's companies.

The country's top seven judges found the initial decision by NAMA to take the loans was invalid as it was taken by officers prior to the agency coming into existence.

McKillen, who has 62 properties including shopping centres, hotels and offices, has extensive loans with both state-owned Anglo Irish Bank and the Bank of Ireland. His barristers argued that most of his loans were performing remarkably well in the current climate and almost all properties are occupied by tenants.