Limerick developer Michael Daly 'finished financially' after court judgment of €86.5m

LIMERICK developer Michael Daly said he will be "finished financially" after yesterday's court ruling in which Anglo Irish Bank secured a record judgment order of €86.5m.

Mr Daly consented to the judgment - the largest ever entered against an individual at the Commercial Court - and also agreed to strike out third-party proceedings against partners with the legal firm Dermot G O'Donovan, who were legal advisors to the property group, in addition to being shareholders.

Legal costs in both cases have been ordered against Mr Daly following his consent to conclude both matters.

Speaking to the Limerick Chronicle following the hearing, Mr Daly said he felt "exhausted, shattered and relieved" following the €86,543,769 million judgment order.

"It was a huge burden to bear over a year. I don't know how I feel is the short answer. I've long since realised that my financial worth is gone," he said.

While he said there is relief that yesterday's hearing brings a certain amount of "finality", there is also disappointment that "30 years of effort is gone."

Since leaving the accountancy firm Grant Thornton, Mr Daly set up the Fordmount Property Group in 2004 which went on to pioneer a series of notable developments in the region, worth in the region of €300 million.

He said his made his decision in the past week, having considered his options for a number of weeks.

"Clearly it has enormous financial implications for me, and I've been aware of that for the last 12 months," said Mr Daly, 52.

The judgment arose due to unpaid property loans of over €165 million made to his companies for developments in Limerick.

In his defence, the North Circular Road resident said he was regarded as a "favoured developer" by the bank, was actively encouraged by Anglo to undertake massive developments, and had relied on oral assurances from executives that personal guarantees were secondary to security taken by the bank and would never be relied upon.

TO READ MORE OF MICHAEL DALY'S REACTION TO THE CASE SEE THE COUNTY AND CITY EDITIONS OF THE LIMERICK LEADER