TPG Angelo Gordon and Atlas SP Partners’ lending to a Market Financial Solutions funding vehicle named after a semi-precious stone will have precious little recoveries, according to an administrator’s report.
Two months after the appointment of administrators to the funding vehicle, Zircon Bridging, the insolvency practitioners have identified 98 live loans with a total balance of £98.4m.
This is despite the company’s records showing a £552.6m loan book on the date of administration. Angelo Gordon is owed £44m by the funding vehicle as mezzanine lender and Atlas SP Partners is owed £475m as the senior lender, according to a report from the administrators filed with Companies House on 27 April.
Besides the loans that have been identified, there is also £14.39m of cash in the vehicle, but this is far from enough to make up the difference, especially after the costs of administration are taken into account.
“It is estimated that the Lenders are likely to suffer a significant shortfall, the amount of which is currently unknown as the Administrators continue to investigate the asset position of the Company,” reads the report. “Based on the information available at the date of this report it appears unlikely that...
