MFS Creditors Facing £1.3 Billion Hit Allege Improper Loans (1)

Creditors caught up in the collapse of UK mortgage lender Market Financial Solutions Ltd. claim a network of companies linked to its owner sits at the center of an alleged fraud that helped cause a £1.3 billion ($1.8 billion) shortfall.

A London judge on Tuesday placed eight companies into administration following an urgent application from two creditors, Zircon Bridging Ltd. and Amber Bridging Ltd. They argued in court filings that the directors and owners of each of the companies on paper are actually individuals connected to the co-founder of London-based MFS, Paresh Raja.

The firms — all of which appear ...