Conveyancing Practice

Service(s): Personal Insolvency & Advisory Services
Sector: Professional services

Charles Turner was appointed by the partners of this solicitors’ practice, following an introduction by one of its bankers, to conduct an independent business review. The firm was experiencing financial difficulties as a result of losses incurred over an extended period, in particular in its volume conveyancing and debt collection divisions neither of which were financially viable as structured. The business had multiple creditors with substantial liabilities notably to HMRC, the landlord for the main office premises and three banks. 

Following in depth consultation with the partners of the firm and the key creditors, Charles provided advice on a proposed restructuring process, which was followed by the set-up of a formal Partnership Voluntary Arrangement (PVA) with a wide range of creditors. 

The PVA enabled the partners to promote a successor corporate entity, to which the business assets were sold, with a new Chief Executivewho introduced capital for the new business. This resulted in the preservation of the value of the key assets, in particular work in progress and the client base for the benefit of the general body of creditors. In addition, the creditors agreed not to pursue their claims against the partners outside the PVA. 

The partners transferred to the new firm and have been able to continue in practice as well as avoiding bankruptcy proceedings. 

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