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Lighthouse in bid to rescue Lifeboat

Lighthouse Group is believed to be in advanced negotiations with the administrators of Lifeboat to acquire the stricken IFA and mortgage broker.

Sesame and Destini have both been in talks with Lifeboat about buying all or parts of the business but negotiations have not progressed.

Tenet Group pulled out of talks a week ago after it was unable to come to a deal with administrator BDO Stoy Hayward.

Any deal would need to meet three criteria – paying off sums due to business partners for pipeline business, satisfying the FSA over capital adequacy and paying off creditor Bank of Scotland, which placed Lifeboat into administration.

Lifeboat&#39s capital adequacy is believed to be short of FSA requirements by around £700,000 while pipeline debts could be higher than this figure.

Lifeboat Group chief financial officer Bill Wynn is understood to be carrying on day-to-day tasks but BDO Stoy Hayward is in complete control of the company.

Any takeover deal would probably see job losses although Lifeboat has told some of its business partners that it hopes to keep on board its current management and administration facility and wants its brand to survive.

Some brokers have been left sitting on business because they are unsure that they will be paid for any cases passed through Lifeboat.

BDO Stoy Hayward says it will not comment on the current state of negotiations regarding a sale while Lighthouse Group has issued a blanket refusal to comment on any market speculation.

A Sesame spokesman says: “We have taken a look at Lifeboat but will not be pursuing the discussions we have had.”


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