Creditors of collapsed mortgage lender Market Financial Solutions have blocked administrator Nimish Patel of Coots & Boots from overseeing part of the insolvency. MFS collapsed in February amid fraud allegations, owing £2.6bn to major banks and private credit firms. A High Court judge signed off Patel's discharge as joint administrator of MFS International Limited, citing concerns about his prior relationship with MFS founder Paresh Raja and a perception of conflict of interest. Begbies Traynor will replace Coots & Boots on the MFS International administration.

Lenders including Barclays and Apollo had pushed for Patel's removal. The administration has been complicated by MFS's structure of interlinked funds. Patel told the court he had known Raja for around 20 years and that their last interaction was around 2020.

Raja has been accused of systematically plundering MFS, amassing a fleet of luxury sports cars. Stephen Katz of Begbies Traynor said his team identified several extraction companies used to siphon off cash. Both Coots & Boots and Begbies Traynor denied any conflict of interest.