THB and Emblaze directors admit share-for-loan pledges

The chief executive of insurance broker THB Group and the founder of former dot.com darling Emblaze have become the latest entrepreneurs to become embroiled in the loans-for-shares debacle.

Vic Thompson, who founded Thompson Heath & Bond in 1968, and Emblaze founder Eli Reifman, said they had pledged shares in exchange for loans.

The admissions come after Carphone Warehouse founder David Ross on Monday revealed he had secretly pledged millions of shares in companies where he holds directorships to banks in return for personal loans.

Although such arrangements are allowed, they must be disclosed to the company in question.

Mr Thompson pledged 2m of his own THB shares in January in exchange for loans from Allied Irish Banks. The entrepreneur secured the loan to finance THB's acquisition of PWS International, a rival broker.

Mr Reifman said he had pledged 17.3m shares in Emblaze to buy stock in the company. The Israeli businessman said he would liquidate some of his personal assets in order to release those pledges.

THB said in January that Mr Thompson had pledged 1.15m shares to an acquisition vehicle, Guilford Services Limited, but failed to make any further disclosure.

Mr Thompson said he had only been made aware that the AIB pledge constituted share dealing after reading of Mr Ross's situation.

"We needed AIB consent for the acquisition to go ahead," he said. "As part of the acquisition I had gifted 1.1m of my shares to enable some of the PWS debt to be acquired. AIB was looking to get an additional guarantee."