Market Financial Solutions has made an application to the court to enter into administration.
The property finance lender says this step has been taken to protect employees, investors and stakeholders while the business works through an unexpected banking-related issue.
The decision follows a temporary restriction on access to the company’s banking facilities, arising from a procedural matter with its primary banking provider.
While the underlying business remains asset-backed and operationally sound, the board concluded that placing the company into administration was the most responsible way to safeguard value and provide stability during this period and allow operations to continue under the supervision of the court.
Market Financial Solutions says the immediate focus is on “stability, transparency and the careful preservation of value”.
The director also remains “hopeful” that, subject to progress during the administration, there may be an opportunity to stabilise the business and explore options for its future.
But the director highlights that any steps would be taken with the interests of creditors and investors in mind.
Market Financial Solutions founder Paresh Raja says: “This is an extremely difficult moment for everyone connected with Market Financial Solutions. As a family-founded business that has been built over nearly 20 years, this is not a decision that has been taken lightly.”
“The current situation does not reflect a failure of the underlying business or the quality of our assets, but rather a technical and procedural impasse that has temporarily limited our access to everyday banking facilities.”
“My priority is, and always has been, the people behind this business – our staff, our investors and our creditors. Entering administration allows the Company to be protected while we work openly and cooperatively with the joint administrators to find a way forward. I remain fully committed to preserving value and doing everything possible to support a positive outcome for all stakeholders.”
Commenting on Market Financial Solutions’ statement, BDLA chief executive Adam Tyler says: “Our immediate thoughts are with the professional and dedicated team at Market Financial Solutions, as well as the many brokers and borrowers who have built long-standing relationships with the firm over nearly two decades.”
“Market Financial Solutions has been a prominent and active participant in our sector, and we are encouraged by the management team’s proactive steps to seek a structured environment through administration to protect the business’s assets and ensure the continuity of loan management and servicing.”
Tyler adds: “The specialist lending sector remains robust, well-capitalised, and continues to provide vital liquidity to the UK property market.”
“While any instance of a lender entering administration is significant, it is important to distinguish between a systemic industry issue and a specific operational challenge.”
