Eight-year ban for director whose firm crashed owing £33m
Published 01/07/2013 | 01:30
A Londonderry property developer has received an eight-year boardroom ban after his company went bust owing £33m.
Peter Hugh McDaid, 49, of Ardmore Road in the city, had been a director of McDaid Developments, which had residential developments in Derry and Donegal before going into administration three years ago. Its debts included £32.4m to Bank of Ireland, the holder of a charge on the company's debts.
Those loans were then absorbed by the Republic's bad bank, Nama, making it the company's biggest creditor. Mr McDaid gave a directors' disqualification undertaking to the Department of Enterprise, Trade and Investment, and accepted that his conduct had been unfit.
He admitting overvaluing the company's land and property by £9.85m in a statement of affairs, and carrying out two transactions at an undervalue, leaving creditors worse off. The court heard the director had sold a property in Donegal to pay off a €140,000 (£119,700) loan when the property was worth up to €240,000 (£205,000).
He also rented out another property without asking the bank's permission.
And he then gave the tenant the option of buying the property for €400,000 (£342,000) when it was actually worth €550.000 (£470,000).
And he also failed to account for all the Derryy company's fixed assets.
Disqualification periods for unfit conduct while a company director range from two to 15 years.