Blackburn-based debt management firm Spencer Hayes Limited has been sold out of administration through a pre-pack deal.
Spencer Hayes, which operates the www.toomuchdebt.co.uk website, entered administration in December of last year after “an apparent shortfall in the client account” was discovered the month before.
Andrew Poxon and Kevin Murphy of Leonard Curtis were appointed as joint administrators to the company on 18 December and affected a sale of the company’s client database on the same day to Angel Advance Limited.
In the administrators report said it was “anticipated that realisations will be sufficient to the Secured Creditors, and, dependant on the final level of realisations from the clients database, there may be sufficient funds to enable a distribution to the preferential and unsecured creditors”.
The administrators also stated such realisations would not have been plausible had the company entered liquidation.
Prior to entering administration, Spencer Hayes specialised in debt management covering Debt Management Plans, Individual Voluntary Arrangements (IVAs) and bankruptcy.
The company approached the Financial Conduct Authority and began to apply for permission to continue offering consumer credit in November 2014, in accordance with new regulations that came into effect in April last year.
It was during preparation for the application that the “apparent shortfall” in its client account was discovered.