Loan Line goes into liquidation

Accuma Group has put its secured loan master broker subsidiary Loan Line into liquidation.

The group revealed at the beginning of September that it was reviewing the future of Loan Line after it reported losses of £196,000 in the first half of 2008.

The losses at Loan Line were blamed on the withdrawal of a number of major secured loan providers such as First Plus.

The directors at Accuma have therefore concluded that it is no longer in the interests of Accuma’s shareholders to continue to fund Loan Line’s losses.

Accordingly the Loan Line Group directors have convened a meeting on October 14 2008 under section 98 of the Insolvency Act 1986 to appoint a liquidator to put the Loan Line Group, other than its dormant subsidiaries, into a Creditors Voluntary Liquidation.

As of June 30 2008 Loan Line had net liabilities of £81,181. In the December 2007 accounts a full impairment charge was made for the goodwill of the Loan Line Group of £11.8m.

The closure of the Loan Line will result in a write off of approximately £600,000 intercompany liability and an additional net cash outflow of around £90,000 in settlement of liabilities due to the Loan Line Group.

At June 30 2008, Accuma had net cash of £1.5m.