NATIONAL IRISH Bank is likely to be one of the main beneficiaries of the €6 million acquisition of Bloxham’s private client and asset management businesses by rival stockbroker Davy.

The bank is one of the biggest creditors of Bloxham, which was ordered to cease trading by the Central Bank after accounting irregularities were discovered dating back to 2007.

Bloxham owes the Danish-owned bank about €20 million, which was used by the firm to grow the broker and buy out other partners.

As a major creditor, the bank was consulted by the firm on the transaction with Davy.

Bloxham does not have to hold a minimum level of capital in reserve as it is no longer a regulated entity, which means the money from Davy could go towards repaying creditors. The firm also faces lawsuits from bond investors.

Seven partners, including Tadhg Gunnell who was suspended, face any shortfall. As members of an unlimited partnership, they are liable for the firm’s debts.

The Central Bank and forensic accountants from KPMG, working on behalf of the other partners at Bloxham, are carrying out further investigations following last week’s discovery that income was overstated for several years in reporting and accounting by the firm. The discovery wiped out most of the €5.8 million the firm must hold in reserve, though a final figure on the deficit has to be established.

Mr Gunnell assisted the firm and KPMG over the weekend with their initial investigation and signed off on the Davy deal as a partner.