Four hundred jobs are to be saved at defunct firm Cobbetts, an outcome that sparked much back-slapping among the insolvency practitioners involved. KPMG will be counting its winnings, though the outcome is, of course, a rightful cause for celebration for the legal profession in general and those lawyers saved from the dole in particular. However, the nature of this rescue does prompt a few questions about process.

At the time of going to press, KPMG said it was still ‘too early’ to say what return creditors could expect from a corporate entity which described itself as a ‘steady ship’ as recently as December. Was Cobbetts in discussions with the SRA about its financial problems when it made that statement?

The regulator told us it did not discuss details of talks with firms that are in ‘relationship management’.

Serendipitously, another press release reached our inbox this week, from the Commons Business, Innovation and Skills Committee. This tackles the shortcomings of pre-pack administrations – particularly their lack of transparency and the fact that they look a lot like ‘phoenixing’, where it appears that an insolvent company has reformed without any redress to its creditors.

There is no reason to believe this deal is not entirely proper. But it is interesting that the committee recommends that BIS look again at Statement of Insolvency Practice 16, on how pre-packs should be conducted. SIP 16 was introduced in 2009 – by the SRA.