Market Financial Solutions has submitted a request for administration to the court.
The real estate finance provider says this step was taken to protect employees, investors and stakeholders while the company is hit by an unexpected banking-related issue.
The decision follows a temporary restriction on access to the company’s banking facilities, arising from a procedural issue with the main banking provider.
While the underlying businesses remain asset-backed and operationally sound, the board concluded that placing the company into receivership was the most responsible way to safeguard value and provide stability during this period and to continue operations under court supervision.
Market Financial Solutions says its immediate focus is on “stability, transparency and the careful preservation of value.”
The director also remains “hopeful” that, depending on progress during the term of office, there may be an opportunity to stabilize the company and explore options for the future.
But the director emphasizes that the interests of creditors and investors will be kept in mind at every step.
Market financial solutions founder Paresh Raja said: “This is an extremely difficult moment for everyone involved with Market Financial Solutions. As a family-founded business built over nearly two decades, this is not a decision that has been taken lightly.”
“The current situation does not reflect a failure of the underlying businesses 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 will help protect the business while we work openly and co-operatively with the joint administrators to find a way forward. I remain fully committed to preserving value and doing everything I can to support a positive outcome for all stakeholders.”
Commenting on Market Financial Solutions’ statement, Adam Tyler, CEO of BDLA, said: “Our immediate thoughts are with the team at Market Financial Solutions, as well as the many brokers and borrowers who have built long-term relationships with the company over nearly two decades.”
“Market Financial Solutions is a prominent and active participant in our industry, and we are encouraged by the management team’s proactive steps to seek a structured environment through administration to protect the company’s assets and ensure continuity of loan management and servicing.”
“The specialist lending sector remains robust, well capitalized and continues to provide essential liquidity to the UK property market.”
“While any instance of a lender being placed into administration is significant, it is important to distinguish between a systemic sector problem and a specific operational challenge.”