ARs left hanging as Network Data transfer deal fails
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Network Data Holdings, the parent group of both networks, was temporarily suspended from the Alternative Investment Market last week following the collapse of discussions with Lighthouse Group.
A London Stock Exchange announcement reveals that Network Data's board requested a temporary suspension of trading in light of the uncertainty surrounding the firm.
It has also emerged that the Lighthouse deal was blocked by Network Data's banker HBOS as the bank called for an alternative bidder before any transfer could go ahead.
The LSE statement says: "The board confirms that an offer had been made by Lighthouse Group and accepted by the group for the mortgage broking businesses. But the offer required approval from the group's bankers to proceed to completion and this was not provided in time. The offer has been withdrawn."
David Hickey, executive chairman of Lighthouse, says: "Our board regrets that the arrangements to conclude a deal were not implemented."
MBSL is still showing on the Financial Services Authority register as being authorised, despite the turmoil surrounding Network Data.
Dino Savva, principal of Hertfordshire-based MortgageCare, is an AR with MBSL. He has written to Richard Griffiths, chief executive of Network Data Holdings, to ask why £7,969 in commission has not been paid. He has also written to the FSA asking it to investigate the matter.
Savva says: "Lenders are still making payments to MBSL because they are not being told any different. I rang the FSA for assistance and was told it was a contractual issue."
The FSA and Lloyds Banking Group both declined to comment.
As Mortgage Strategy went to press there were rumours that the administrator acting on behalf of Network Surveyors, a subsidiary of Network Data Holdings, may have approached a major surveying group for a rescue bid.
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