The GREATMINSTER insurance broking group has plunged into receivership just two weeks after its debt-ridden subsidiary, Lloyd's brokers Miles Smith, fell into liquidation.
The move is a further blow to Greatminster managing director Martin Mann who has recently seen the failure of a number of Greatminster companies.
Greatminster was the holding company for Miles Smith which folded in May when its parent company was unable to repay massive borrowings. The company's creditors include, Axa and Trenwick and Lloyd's insurers Octavian Syndicate, Limit Underwriting and Wren Motor Syndicate.
The official report of Miles Smith's joint liquidator SPJ Wadsted of HLB Kidsons said that since Greatminster acquired the Lloyd's brokers in 1997 it had built up substantial inter-company debt owed to Miles Smith.
Earlier this year, another Greatminster company, The General Network, which served 60 personal lines brokers broke up indefinitely.
Now Greatminster has been unable to meet its commitments on a loan from commercial lender Riggs Bank. And on June 2, the bank appointed Angus Martin, an insolvency practitioner at Deloitte & Touche, to recover its funds.
Only two of Greatminster's seven staff have been made redundant, the rest have been kept on.
Martin said Greatminster's problems began after a number of business disposals had left it with insufficient funds to cover its liabilities.
The disposals included a management buy-out of broking company Tenet and its subsidiary companies M&E Network and Interdependancy Ltd which continue trading.
Martin added that the Greatminster Group's complicated structure meant that his investigations would take some time to complete.