First European faced difficulty four years ago, when Director Nick Barron took to industry media to reassure brokers over funding issues after the adverse lender relaunched into the market.
The winding up petition has been presented by Richard William West and Trevor Malcolm Newman, trustees of Waltham Forest Friendly Society. FES must now answer for its financial issues in court in February, facing the possibility that creditors could take receivership of the assets should their case prove successful.
It was recently reported that FES took on two new directors in August 2013, only for both members to be removed after just three weeks.
The fate of the company will be heard on 3 February 2014.
