London Scottish Bank goes into administration
The Associated PressLondon Scottish Bank, which specializes in unsecured consumer lending and debt collection, said Monday it has gone into administration after its capital reserves ran short and it couldn't find a buyer.
The British Treasury said it would protect all retail deposit savings held with the bank, even deposits of more than 50,000 pounds ($75,000) — the limit the government has vowed to guarantee at all British banks.
London Scottish Bank has around 10,000 customers with 250 million pounds ($375 million) worth of deposits. It employs roughly 700 people.
The bank said it had called in administrators after sustaining a shortfall in its capital reserves and being unable to find a buyer for the business in time to avoid administration.
Administrators are appointed to salvage as much of a company as possible for the benefit of its creditors, a process which can involve trying to keep the business as a going concern or breaking it up and selling it off.
"A number of parties remain interested in acquiring the group," the bank said in a statement.
Shares were suspended on the London Stock Exchange. They closed on Friday at 2.6 pence ($0.04).