Administrators have said that a dozen jobs were saved through a rescue package to sell personal injury specialist Prolegal Solicitors Ltd.
As revealed by the Gazette last week, the London-headquartered business went into administration last month and was bought by Garrynasillagh Ltd, a subsidiary of London firm Gordon Dadds.
Andrew Hosking and Sean Bucknall of financial advisory firm Quantuma were appointed as administrators and confirmed that the pre-pack deal will ensure the preservation of jobs at the practice and the protection of client interests.
Hosking has considerable experience of the legal sector. He advised on the Linder Myers administration and been involved with other firms that have either been sold or shut down, including Isaac Abrahams, Davenport Lyons, St John Law, Jeffrey Green Russell, Manches and Challinors.
He said: ‘Prolegal was a legal practice specialising in the personal injury market but also providing legal services in the employment and family sectors. Lock up of work in progress and the over-leveraged nature of the business caused cashflow issues and so the decision was taken to seek advice on a possible administration.
‘Following consultation with the directors, we have been able to effect a pre-pack sale of the business to Garrynasillagh Ltd, which is deemed the successor practice.’
The regulatory team at southern England firm Ashfords, led by partner and former SRA head of regulatory management Sam Palmer, has been appointed solicitor manager by the joint administrators.
Palmer said: ‘We are pleased to be able to help find the best possible solution that has protected the interests of clients, employees, creditors and other stakeholders.’
The extent of debts owed to creditors has yet to be published.
The company was exempted from posting full accounts for 2014 because of its size, but the reduced version indicates that amounts due to creditors within one year had risen from £6.34m to £7.14m at the last accounting date.
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