Bad debts push Catalyst Securities into administration

A MANCHESTER lender that specialised in bridging loans has gone into administration.

Catalyst Securities, acquired by Zeus Capital from US institution Eurolink America for £25m in 2006, ceased trading to new customers two years ago after its customers were unable to repay their debts.

The business specialised in lending to private individuals and property developers.

Paul Dumbell and Brian Green of the accountancy firm KPMG have been appointed joint administrators.

In a statement the firm said: “The loans within the book are all in default and the company has or is in the process of exercising its security to take possession of the properties. Accordingly, the properties will be marketed for sale by the administrators.”

The portfolio consists of a mixture of commercial, residential and development sites spread throughout the UK. One member of staff was made redundant following KPMG’s appointment.