Dawnay, Day asks E&Y to help it restructure-source
LONDON, July 14 (Reuters) – Privately owned British investment firm Dawnay, Day has hired Ernst & Young to restructure its complex web of companies, a source close to the firm said on Monday.
“Ernst & Young has been appointed to restructure certain of the Dawnay, Day companies,” the source said. The source said the entire group was not being put in administration, contrary to some press reports.
The Financial Times reported on Monday that the firm had also put its investment banking unit up for sale in a bid to raise cash after hefty losses on investments.
Dawnay, Day, declined to comment. The firm, owned and run by Guy Naggar and Peter Klimt, owns and manages more than $10 billion in assets and is involved in property investment, fund management and financial services.
Dawnay, Day last week sold its entire 26 percent stake in F&C Asset Management, held through derivatives and shares, which press reports said was to meet margin calls from its brokers.
On Monday, British property investor Dawnay Day Sirius, whose shares have fallen over 20 percent in recent days on fears over its finances, insisted its main operating subsidiary is solvent and said it was separate from the Dawnay, Day group.
“There are obviously issues within the Dawnay, Day group at the moment, but Sirius is unaffected,” Kevin Oppenheim, Dawnay Day Sirius Real Estate Asset Management told Reuters.
Dawnay Day Sirius is unconnected to Dawnay Day, but Naggar and Klimt both hold personal stakes in Sirius, Oppenheim said.