Merchant House Group enters administration

Merchant Capital went into administration in January, and had been obligated to pay for the ongoing custody and administration costs relating to structured product plans that it managed. In the event of Merchant Capital defaulting, its parent company, the formerly AIM-listed MHG, had guaranteed to pay these liabilities. However, in a note on asset custodian Reyker Securities website, it said MHG had not honoured this guarantee. As a result Reyker Securities has instigated winding up proceedings against MHG. Reyker said its solicitors were notified on 12 April that the director's...