David Daly’s €457m loan has been put in the spotlight when the German bank, Deutsche Bank, has openly expressed interest in buying the loans of Daly and his children. Daly is a property developer and owner of several properties including the New Bond Street building known to be the home of Louis Vuitton in London.
Ireland’s National Asset Management Agency or more commonly known as NAMA is deciding to appoint a receiver over Daly’s properties. NAMA is giving Daly 48 hours to settle the loans reaching around €457m or else the receivership will be put into place. Daly’s team is questioning the appointment which took place after NAMA has taken over the Daly’s loan with Allied Irish Bank (AIB).
There are speculations that the decision of NAMA was triggered when Daly failed to take side with NAMA in a business plan which was believed to have helped clear Daly’s debts. Other speculations involved issues that Daly is shifting some of the properties under his name to his wife’s name.
But with the Deutsche Bank expressing interest in Daly’s loan, the case has become a bit clearer. There were already issues about Daly being in talks with the Deutsche Bank to refinance his debt. These talks were confirmed when Deutsche Bank has stated its interest to buy the €457m loan at the Irish High Court.
Is Daly allowed to refinance? This is one of the vital issues of this case. His loans where shifted to NAMA automatically following legislation. This poses the issue of his entitlement to refinance. Daly insists he has the right to do so.
This is a legal challenge to Daly. According to the senior counsel of Daly, Michael Cush, the plan to refinance through Deutsche Bank is for the interest of the Dalys. Their concern is that NAMA might want to take off the Louis Vuitton store from the New Bond Street building. This will lead to a depreciated value of the building and may stop foreign companies from becoming interested to purchase the property. This is not unlikely to happen as NAMA will be taking on this legal challenge as well. Both parties are under pressure right now.
The legal battle continues. Daly fights for his entitlement to refinance while NAMA fights for its right to appoint receivers over Daly’s properties. Cush has opened an application and the case is said to last for four days.
