Mortgage Times directors expect substantial returns for secured creditors

19 February 2010 | By Natalie Thomas

The administrators of The Mortgage Times Group say the directors of the network anticipate substantial returns to secured creditors.

Insolvency firm Kelmanons Costa Business Solutions was appointed as administers to The Mortgage Times Group on Tuesday, Mortgage Strategy can reveal.

John Kelmanson, managing partner at Kelmansons, says the secured creditors are the priority, but other creditors including appointed representatives could also be paid something.

He says it is too early to put a figure on how much is owed, but says: “The directors anticipate a substantial return for secured creditors, and if we are able to maximise returns from the assets of the business hopefully all creditors will receive something.”

The firm is currently gathering information and writing to all creditors, which he says will take a few weeks.

It says it is considering all options, one of which is selling parts of the business to interested parties.

Kelmason says: “There’s a lot of people in the industry that are interested.”

Readers' comments (13)

Anonymous | 19 Feb 2010 5:40 pm
Kelmason says: “There’s a lot of people in the industry that are interested.”

What's the betting a firm called Phoenix MT Ltd will jump in and nick everyone's commissions... just like they did with Network Data???
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Anonymous | 19 Feb 2010 5:42 pm
"All creditors will receive something"...i very much doubt it!
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Toddy | 19 Feb 2010 5:48 pm
AR's should have been treated as 'staff' and been paid first. Any other creditors should have been regarded as Risk takers and repaid on that basis.

I trust that if FSA cannot get rid of Independent advisers by other means, this way will work very well.
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Frank Jurga | 19 Feb 2010 5:59 pm
I've had to check my diary to make sure that it's not April Fool's day! Any AR who thinks that they are going to get any money out of this is certainly a fool. I expect administrator fees alone will be well in excess of £200,000. A substantial amount for secured creditors can only be a maximum of 100% of the debt and, since I don't see them getting 100% based on their last set of accounts, ARs will get nowt. The estate of a network I was with previously is still not settled after 3 and a half years so I won't be bothering to claim anything from MT. We all gotta move on. I was hoping the press release in Jan re the FSA's involvement would be the end of the gossip but I suppose we have to put with all of the c**p that will come out from the administrators' investigations.
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Frank Jurga | 19 Feb 2010 6:03 pm
Pheonix will get the client bank and then have the 'right' to write to everyone of our clients.
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Ex Employee | 19 Feb 2010 6:45 pm
I have missed something, sell what?
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Another Ex Employee | 19 Feb 2010 6:59 pm
What assets? Rubbish.
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Anonymous | 19 Feb 2010 6:59 pm
it's well known fact that on the day they made the announcement (ie no longer trading) they asked ALL the advisers at Mortgage Minds (Mortgage Times very own AR) to go with them to a new venture !!!!

So no, don't hold your breath for anything positive to come out of this debacle.....
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Salil Chaudhari | 21 Feb 2010 1:32 pm
I bet the Insolvency firm COSTA lot of money.
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Anonymous | 23 Feb 2010 12:45 pm
i am an ex employee,i wish the Directors at MT all the best i am informed they had signed personal PG,s and put there own money into the business to try and make it work.Alot of AR,s seem that are commenting above owe MT money,funny its always the way.
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