Dawnay Day creditors call in receivers

Only days after Dawnay Day appointed Ernst & Young to restructure its portfolio, creditors have appointed three BDO Stoy Hayward partners as receivers to almost half the finance house's £2bn-plus portfolio of assets.

As credit conditions deteriorated further, the lenders made the move late yesterday and seized almost £1bn of assets, which include much of Dawnay Day’s privately held property portfolio, as collateral, The Daily Telegraph reports.

BDO restructuring partners Shay Bannon, Toby Underwood and Mark Shaw have been appointed joint administrative receivers for Starlight Investment and Insureprofit. The creditors are understood to want an orderly sale of assets to recover their loans.

About half of the company remains under the control of founders Guy Naggar and Peter Klimt, but the lenders are said to be prepared to pursue them if their funds cannot be recovered.

Further reading:

E&Y veteran to restructure Dawnay Day

Read The Daily Telegraph story