Tuesday, December 02, 2008
London & Scottish enter Administration
| London Scottish Bank plc (the 'Company' or 'Group') announced on 17 September 2008 that it continued to have a shortfall of regulatory capital and was engaged in discussions that might or might not lead to an offer for the Group. |
Whilst a number of parties remain interested in acquiring the Group, there can be no certainty that any offer will be made for the Group on a viable basis or that the regulatory capital shortfall can be remedied in the short to medium term. Without the certainty of an offer for the Group or the regulatory capital shortfall being remedied, the FSA yesterday took action to impose a requirement on the Company's permission to prevent it from accepting deposits and the Company is therefore unable to renew maturing deposits. Consequently, the Company instructed its lawyers to take immediate steps to petition the Court for an Administration Order, which was made by the Court at 11.54pm on 30 November. Thomas Burton, Margaret Mills, Thomas Jack, and Simon Allport all of Ernst & Young LLP have been appointed as joint administrators. HM Treasury and the Financial Services Compensation Scheme have confirmed that no FSCS Eligible Claimant will lose any money on their deposits as a result of the administration. The Company will seek to work closely with the administrators to minimise the effect on employees. Accordingly, the Company has requested that its shares be suspended with immediate effect from trading on the London Stock Exchange and listing on the Official List. |
DATED: 02.12.08
FEED: IUK
