Market Financial Solutions has confirmed it has made an application to the court to enter administration, citing a temporary restriction on access to its banking facilities.
The specialist UK property finance lender said the move was taken to protect employees, investors and stakeholders while it works through what it described as an unexpected banking-related issue.
BANKING RESTRICTION
The company said the decision followed a temporary restriction on access to its everyday banking facilities, arising from what it called a procedural matter with its primary banking provider. It stated that the underlying business remains asset-backed and operationally sound.
Founded in 2006, Market Financial Solutions has operated in the bridging and commercial property finance market for nearly two decades.
The lender said it has managed more than £1.2 billion in cumulative lending over its lifetime, with its loan book reaching approximately £2.4 billion at its peak.
“EXTREMELY DIFFICULT MOMENT”
In a statement, founder Paresh Raja (main picture) said: “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” – PARESH RAJA
“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.”
The company said administration would provide a structured and regulated environment in which the business and its assets can be protected, with loan management, collections and servicing maintained under the supervision of independent officers.
