Blue Motor Finance went into administration yesterday but was immediately bought by Hodge Bank.
Simon Edel, Richard Barker and Alan Michael Hudson of Ernst & Young LLP were appointed as joint administrators.
According to the Financial Conduct Authority Blue Motor Finance had been running at a loss for a number of years and faced significant compensation liabilities it could not meet.
Burges Salmon advised Hodge Bank on its acquisition of Blue Motor Finance through a pre-pack Administration process.
Burges Salmon said the transaction enabled the business, operations and employees of Blue Motor Finance to transfer to Hodge MF, protecting approximately 180 jobs and ensures continuity for over 100,000 customers.
“We are pleased to have advised Hodge Bank on this significant transaction. Drawing on expertise from across our Financial Services sector team we supported the bank in delivering a complex transaction to a challenging timetable. We wish Hodge Bank every success as it takes the business forward,” said Emily Scaife, partner at Burges Salmon.
