DEVELOPER DAVID Daly and his children have gone to the High Court to prevent the Nama from insisting on repayment of their €457 million loans with Allied Irish Banks or appointing a receiver over properties.
The State agency yesterday moved to appoint Jim Hamilton of BDO Simpson Xavier as receiver over a number of Dublin properties, including a building on St Stephen’s Green and Airside Business Park on the city’s northside.
At the same time, it is seeking to appoint Shay Bannon and Sarah Rayment of BDO in Britain as receivers to a number of London properties, including two on Bond Street, one of which houses Louis Vuitton’s flagship store in the city, and the other which is occupied by Mulberry.
Nama did not comment on the case yesterday. It is understood that it is moving against Mr Daly as it is not satisfied with his business plan detailing how he intends to repay the debt due to the agency. In that situation, Nama can appoint its own receiver to the properties involved.
Michael Cush SC, for David, Joanne and Paul Daly, yesterday secured permission from the High Court to serve short notice of their proceedings on Nama, the State and AIB. Mr Cush said the Dalys’ case was they were meeting all their obligations concerning the loans but Nama had taken the view these were demand facilities which could be called in any time.
Nama had done so last Wednesday and given his clients until close of business on Thursday to repay all the loans, he said.
Mr Justice Garret Sheehan told Mr Cush he could serve short notice of his application on the defendants and returned the matter to Monday.
The Dalys are seeking a declaration that credit facilities entered into by them with AIB in July 2007 and February 2008, which loans were transferred to Nama last year, are not repayable on demand.
Nama’s decisions to demand repayment of the facilities on or about June 22nd and June 24th is unreasonable, disproportionate and contrary to their constitutional rights and an improper exercise of its powers, they claim, and they want court declarations to that effect.
In an affidavit, David Daly, New Street, Malahide, said the plaintiffs wanted to restrain Nama from taking any steps to seek repayment of the plaintiffs’ credit facilities with AIB and/or to enforce any obligations related to those facilities, including the appointment of a receiver.
The properties involved in the dispute are held by Mr Daly and his family and are not part of his residential construction business, Albany Homes.
They include 87 Stephen’s Green, where the Garda Inspectorate is based, the River Island store on Grafton Street and Airside, close to Dublin airport.
The court heard yesterday that from 1995, when he established Albany, Mr Daly was concerned to involve his family and share his wealth with them. Since that time, property assets were purchased in the names of his two children so as to increase their wealth.
This case concerned the plaintiffs’ personal facilities with AIB on foot of which €457 million was currently outstanding, he said.
From the outset of the relationship with AIB, the investment strategy was the loans would be repaid out of rental income and after tax profits from Albany, and AIB had fully supported that strategy.
Despite the difficult financial conditions over the last three years, the cash flow projections, “broadly speaking”, were being met. These had anticipated a payment of €210 million being made on the proposed liquidation of his interest in Albany in January 2014 (through the sale of his shares to his children) and the further reduction in the level of debt over time through rent payments.
