Developer Paddy Kelly has signed an agreement for new funding with Anglo Irish Bank that will provide him with fresh working capital. The developer had been considering a bankruptcy scheme of arrangement, but will now be able to continue trading.

Kelly is understood to be expecting his property loans to be placed into NAMA, the state-owned property loan agency, when it comes into effect.

Kelly is well known for his joint ventures with other businessmen – sources say they are worth €3bn – because in the boom times he used to use the phrase "TEAM – Together Each of us Achieves More". He has done deals using multiple business partners all over the world including in the Caribbean, the United States, Canada, the UK and Italy. However, the multiple partners also meant that if Anglo wanted to appoint a receiver to any of the co-owned assets it would have had to put all the parties' companies in which Kelly is involved in receivership.

Kelly has €700m of debt from Anglo Irish Bank and is believed to have met with it several times last week. Since April at least, Kelly had been asking the bank to reinstate loan facilities it had given him and to roll up interest on his loans. Anglo had decided last February to stop further drawings on a facility granted to him last year. Kelly redeveloped large parts of Smithfield Square in Dublin.

Kelly said recently that he felt the banks were trying to bankrupt him. "The banks are being bailed out and they are putting the boot in right, left and centre, destroying businesses. They're not lending and they're getting away with telling lies," he said.

Kelly interests have included numerous hotels, the Thomas Read pub group, and the former Winter Olympics village in Turin, Italy.