Firm News
Halliwells to be liquidated
BDO's Dermot Power and Shay Bannon have been formally appointed as liquidators of Halliwells, as the winding-up of the failed Manchester law firm continues.
Under the Insolvency Act former partners could potentially be liable to repay any drawings paid out from the limited liability partnership in the two years before Halliwells went into administration in the summer of 2010.
At the time of its collapse Halliwells it is reported owed secured creditor Royal Bank of Scotland around £17.7m, with a progress report last July revealing that at that stage BDO had received claims from creditors worth £191.5m.
32 ex-Halliwells partners - including former chairman Ian Austin - prepare to enter mediation with BDO over its bid to reclaim more than £21m the partners gained through a controversial "reverse premium" property payout it is reported in 'Legal Week'.
The £24.5m payout was received in 2007 when the firm sold a stake in the freehold of its new office in Spinningfields, Manchester. The equity partners then distributed the money among themselves - a move that has been critised for contributing to the firm's subsequent problems and ultimate collapse.
BDO launched its claim in the High Court in July, with the partners agreeing to enter mediation with the intention of settling out of court. The first meeting is expected to take place this spring.
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