When we reported on the collapse of the first major UK-based private credit lender, Market Financial Solutions (or MFS), the UK mortgage lender that borrowed more than £2 billion ($2.7 billion) from Wall Street backers, and which collapse in spectacular fashion, we pointed out that the mastermind behind the operation, Paresh Raja, may have opportunistically fled to Dubai, although he may have since fled again for obvious reasons.
Now, Bloomberg reports that officials overseeing the wind-down of have obtained a worldwide asset-freezing order against owner Paresh Raja. Courts in London and Dubai granted the order, according to a spokesperson for AlixPartners, the insolvency firm appointed by creditors to oversee the insolvency of MFS.
MFS borrowed from Wall Street banks and investment firms including Barclays and Apollo’s Atlas SP Partners unit. The London-based firm collapsed Feb. 25 amid allegations of wrongdoing.
Creditors have since alleged that they’re facing possible losses of at least £1.3 billion.
“We welcome the granting of these applications which follow two weeks of intense analysis and investigation into the operations and affairs of MFS and Paresh Raja,” the spokesperson for AlixPartners said in a statement.
“This is an important and significant step in this very complex situation, and the support of the courts is critical as we continue our pursuit of the best possible outcome for all creditors of both MFS and its associated companies.”
A spokesperson for Raja declined to comment and a London court didn’t respond to an email requesting the freezing order. The Financial Times first reported the freezing order.
