Directors of Seiza Management, a subsidiary of Seiza Capital, appointed Said Jahani and Paul Billingham from Grant Thornton as administrators on Tuesday. Seiza Management is the back office and servicer of mortgages managed by the firm.A letter released through the Australian Securities Exchange by Jahani said neither the Seiza Augustus Series 2007-1 Trust nor the trustee of that trust (Australian Executor Trustees) were in any form of administration.Grant Thornton is seeking a third party servicer, The Age reported.The grounds for the appointment of administrators to the Seiza subsidiary are unclear.However, the mortgage pools funded through the Seiza Augustus trust have performed poorly.Standard & Poor's reported two weeks ago that losses booked against the unrated Class G notes are mounting and a large proportion of delinquent mortgages now exceed 90 days in arrears, increasing the likelihood of loss. This will have cut revenues to Seiza.The Seiza Augustus Series 2007-1 sold $404 million of notes in April 2007, backed by residential mortgages (75 per cent) and commercial mortgages (25 per cent). There was no lenders' mortgage insurance cover. Outstandings have since paid down to less than $240 million.Seiza Capital reported a loss of $6.4 million in the year to June 2007 following a loss of $7.5 million in 2006, The Age reported.