Loanmakers re-emerges with new identity as chief executive buys it

Loanmakers is the latest firm to re-emerge with a new identity after it was bought out of administration.

The secured loans master broker appointed administrators last Wednesday but within 24 hours it was purchased by Ges Ratcliffe, chief executive of the firm.

Under his new company, Credit-flex Loans and Mortgages, Ratcliffe acquired the business, assets and goodwill of Loanmakers.

Four staff have been made redundant but the restructure has saved the jobs of 33 Loanmakers employees.

The firm reported a £1.6m loss for the six months to September 30 2008, following a £6.8m loss for the year ending March 31 2008. Its shares were recently suspended from the Alternative Investment Market as it attempted to resolve funding issues.

The final nail in the coffin came when its proposed £1.86m rights issue was rejected by shareholders last October.

Creditflex says it will protect existing business relationships and introducer pipelines, and also that commissions will be paid.

Kevin Cresswell, managing director of Creditflex, says: “Now we have formed a new company I anticipate we will be able to add more value and choice by providing a one-stop shop for our partners.”

It is not yet known if Loanmakers left any debts behind when it folded or set aside funds to pay for complaints made against the firm relating to the sale of payment protection insurance.

One secured loans broker says: “I can see the attraction of relaunching in a different form and leaving PPI complaints behind.

“We have done everything by the book regarding PPI – the Financial Services Authority has even told us we have done more than a firm our size is obliged to.”

He adds: “The problem is that when it comes to single premium PPI, the Financial Ombudsman Service seems to favour consumers in the majority of cases.”