Nama offer to developer David Daly withdrawn

THE NATIONAL Asset Management Agency (Nama) has taken any offers made to developer David Daly and his family regarding repayment of €457 million in loans off the table, the State agency said yesterday.

While it did not comment on the issue, the move means it could pursue €80 million in assets, including €17 million in cash, that the developer transferred to his wife Mary in 2009.

Mr Daly, his daughter Joanne and son Paul failed this week to get an injunction in the High Court halting the appointment by AIB and Nama of receivers to properties in Ireland and Britain.

They also failed to get declarations that the agency and the bank were not entitled to seek repayment of €457 million in loans.

The court did grant them leave to bring a legal challenge based on their claim that Nama should have given them a hearing before issuing letters demanding the repayment of the money.

A Nama spokesman said yesterday that it was now examining all options for the repayment of the loans, which were originally made to Mr Daly by AIB to pay for property investments.

“Any proposals made prior to the time of the appointment of receivers to the properties have been taken off the table,” the spokesman added.

During the case, the court heard that Mr Daly had transferred €80 million in assets, which included €17 million in cash, to his wife for tax reasons. Nama wanted these assets transferred back to Mr Daly’s ownership so they would be available to the agency. In negotiations, Nama had indicated that it was prepared to settle for €10 million of the €17 million in cash. Ms Daly did not agree to this. That proposal is now off the table and the agency could seek the full amount.

It is not known how much of the original sum is still available, as Mr Daly made the transfer two years ago. It is understood that Nama never intended to forgo €7 million that would otherwise been available to it.

Nama’s spokesman said that in all cases its priority was to get the maximum return for the taxpayer. If the agency cannot recover the full amount due from an individual debtor through a sale or some other mechanism, the debtor remains liable for the balance.

Nama and AIB appointed receivers to Mr Daly’s properties, including the block housing the Louis Vuitton store on London’s Bond Street, in June, after he failed to agree a repayment plan.

Correction December 30th, 2016: An article in the edition of December 20th 2011, concerning a settlement reached between property developer David Daly, his family and NAMA incorrectly stated that the deal  included the reversal of a 2009, €80 million cash and property transfer by Mr Daly to his wife Mary. The asset transfer was not reversed and NAMA did not issue proceedings to have it set aside.