Dawnay Day fall-out continues

The fall-out at crisis-hit banking and property group Dawnay Day has continued with receivers being appointed at two more companies.

Accountant BDO Stoy Hayward has been appointed administrator at Dawnay Day Properties and Dawnay Day International, a financial services company. BDO is already administrator to property companies Starlight Investments and Insureprofit.

The move comes as two property companies taken onto London’s Alternative Investment Market severs ties with the Dawnay Day Group, which has run into problems stemming from the credit crunch.

Dawnay Day Treveria, which invests in retail property in Germany, said it had accepted the resignation of Peter Klimt as non executive director. Klimt runs the Dawnay Group with Guy Naggar.

Separately, Dawnay Day Carpathian, which focuses on retail in Central and Eastern Europe, said it was dropping the Dawnay Day part of its name. It proposes being called Carpathian. In addition, it has created a new management agreement severing links with Dawnay Day. The new management firm will be called Carpathian Asset Management, owned 50 percent by Carpathian. The other 50 percent will be owned by the two principals of Dawnay, Day PanTerra, Carpathian’s former property advisor. Carpathian has also acquired assets from PanTerra and other Dawnay Day companies in administration including 75 percent of Atrium companies. Atrium controls development companies set up in Hungary and Romania.

The Dawnay Day group ran into trouble after failing to raise fresh finance while struggling to meet margins calls from lenders. A fortnight ago Ernst & Young was appointed to restructure the group. However, insurance firm Aviva, which lent the group £750 million earlier this year, appointed BDO Stoy Hayward as receiver to several Dawnay Day companies in an attempt to recover its loans.