Bryan Jackson and Anne Buchanan of PKF were appointed joint administrators of Mathon, which was established in 2004.
The firm 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 by the administrators immediately following their appointment which also secured the jobs of the remaining employees.
Bryan Jackson, corporate recovery partner with PKF, said: “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.”
She added that due to the administration, all of the creditors will be paid and the employees have kept their jobs.
“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,” she added.
Bridging company Blemain Group has offered to help brokers who have been caught short by their withdrawal from the market.
Gary Bailey, director of the Blemain Group, said: “We are sorry to hear the news that Mathon Finance has gone into administration. This shows the market conditions continue to affect lenders – now in the bridging finance market.
“Many income sources, property types and status profiles are catered for. We will be happy to assist any brokers who encounter difficulties sourcing appropriate bridging finance facilities as a result of Mathon’s withdrawal.”
