Law firm saved in pre-pack administration deal
12-Feb-2014Stockport-based law firm, Lealaw Limited, has been bought out of administration by Solis Law Limited after being one of the many firms unable to obtain professional Indemnity Insurance (PII) before the start of the year.
Leonard Curtis were appointed administrators on 23rd December 2013 and have since overseen the sale of the assets and business to Solis Law Limited, a connected firm with the same directors.
According to reports, their largest creditors, NatWest and HMRC, were owed £31,950 and £70,000 respectively. Employees are to be transferred over to Solis Law and will be paid back up to £5000 in salary arrears.
Lealaw Limited traded as Lea and Company since 1991, appointing various conveyancers and solicitors over the years to explore new projects in commercial property development.
Solis plans to ensure the business becomes a success and aims to keep some clients on from Lealaw. Alan Berry, Director of Solis Law, said, ‘we concentrate on company work and commercial property work so we have taken those clients forwards and everything else has had to be taken elsewhere by other people.’
According to the press release, this deal has been presented as a pre-pack, however, we cannot be sure as it is unclear as to when the company was bought. Pre-pack deals happen very quickly (the sale of the business and company entering administration happens at the same time). This particular deal could have happened all at once back in December or the company could have been in administration for a while until it was bought by Solis Law (in which case, it wouldn’t have been a pre-pack deal). See this page for more information.