Mathon Finance goes into administration
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Commercial bridging lender Mathon Finance has gone into administration.
Bryan Jackson and Anne Buchanan, of accountants and business advisers PKF, were appointed joint administrators of Mathon Limited on February 17 2010.
Mathon employed five people at its Glasgow headquarters and was established in 2004 as an asset based lending company in the commercial property sector providing short term finance.
The firm has entered into an agreement to assign its loan book enabling it to discharge all secured debt. If the company had been placed into liquidation then this could have destabilised the value of the loan book and would not have been in the interest of all creditors.
The remaining business and assets of the company were sold to Juniper Property Finance Company Limited by the administrators immediately following their appointment which also secured the jobs of the remaining employees.
As a result of these transactions the administrators received sufficient funds to enable all creditors to be paid in full with statutory interest.
Bryan Jackson, corporate recovery partner with PKF, says: “The reasons for the failure of Mathon are fairly obvious given the enormous decline in commercial property values over the last three years in its two key markets in the UK and Ireland. The firm had previously operated successfully for several years but the drop in values was too great to sustain and consequently made the company unable to continue.“
“However, the outcome of this administration is that all of the creditors will be paid and the employees have kept their jobs so it is a welcome result in these difficult economic times and an indication of how useful a pre-pack administration can be in certain circumstances.”
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