John Charcol saved by pre-pack adminstration

By Jamie Dunkley, City Reporter Insurance Published: 6:00AM GMT twenty-four February 2010

The association entered administration department department late on Monday night prior to being paid for by Towergate Financial for a "nominal fee" before long afterwards. Towergate is thought to have knocked about off a opposition bid from Jon Moulton"s new investment car Better Capital.

John Charcol found itself heavily gladdened after the mercantile predicament strike the UK housing market. Despite a array of staff cuts, bureau closures and refinancing measures it was incompetent to restructure and has not filed accounts at Companies House given the commencement of last year.

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Under the conditions of the deal, some-more than 100 John Charcol staff and directors together with arch senior manager John Garfield will send to Towergate, whose own arch senior manager Ian Darby was before authority at the debt broker.

The pre-pack routine has been criticised by regulators for permitting companies to equivocate their liabilities by entering administration department department with a customer already lined up. Over the past year pre-packs have been used by retailers together with USC and Whittards of Chelsea.

Despite pre-packs" argumentative reputation, Mr Darby pronounced the understanding supposing an "excellent fit" in between the dual companies. "John Charcol has a clever code built over most years. We mutually have a good event to suggest monetary formulation and word solutions to Charcol"s clients and clamp versa."

Towergate Financial is piece of the Towergate Partnership headed by businessman Peter Cullum.