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Friday, 29 November 2013

Publisher of Yellow Pages is in administration

Hibu, the publisher of the Yellow Pages, has gone into administration. Previously called Yell Group, Hibu has called upon Deloitte administrators in a bid to save the business from going bust. They have recently agreed to transfer ownership to a holding company as part of a restructuring plan to try and save 12,000 jobs.

The publisher is in debt of £2.3billion and has seen sales fall drastically over the years, largely due to the internet. However, there is still much support behind the publisher and Hibu plans to continue trading while the business moves to a holding company (owned by Hibu's lenders). Hibu assures that there 'will be no impact on Hibu's employees, customers, partners or suppliers.' Back in July, the lenders took control as part of a major restructuring plan to save jobs.

The chairman, Bob Wigley, feels confident that the new digital services and recent marketing campaign will help drive the business forward.

We are not involved in the administration and questions should be directed to Deloitte who are handling the administration.

If you are an employee of the business, and you're worried about what might happen in the future, then please listen to the video below as it will tell you your rights as an employee of a insolvent business.  There is a link at the end of the video to the Government website which expands further on what you need to know.

Wednesday, 27 November 2013

Latest business figures from ONS

Recent statistics from the Office of National Statistics have shown there was a 3.1% increase in new businesses between 2011 and 2012. However, an increase of 25,000 businesses went bust, around 11%.

Perhaps good news for 2012 though: 270,000 businesses were born last year compared to 255,000 businesses that closed.

'The move towards economic recovery has seen birth rates being higher than death rates from 2011, but the gap has narrowed in 2012'.

London had the highest rate for new businesses at 14.8% and also the highest death rate.

This is positive news for the UK economy, with 2013 showing signs of strength across companies and businesses. Those that are struggling to stay afloat do not have to settle with liquidation. There are a number of alternative options to consider, like CVAs, pre-packs and informal agreements with creditors. For more information visit our options page to help you find what's best for your situation.

Tuesday, 26 November 2013

Web server issues

We apologise that the Company Rescue website is currently down - we will have it back up as soon as we can.

Could fan-ownership be the answer for struggling football clubs?

According to recent findings by Begbies Traynor, football clubs are facing increasing financial hardship, with 8% of 72 clubs (from the Championship to League two) suffering. The Red Alert Football Distress Report highlights the ‘downward spiral’ of smaller clubs that are unable to attract enough funding to continue going for much longer. Poor attendance and wavering season ticket revenues has contributed to the financial problems.

Partner at Begbies and previous administrator for AFC Bournemouth, Gerald Krasner, believes the way forward is the Community Interest Company model to keep football clubs alive. The income gap between the top and bottom of the league is ever increasing, so the idea of a CIC is thought to be a positive step forward to ensure a club’s future stability.

Darlington FC and Eastbourne are using this company model to lead the way for fan-based ownership in a bid to maintain stable funding and long-term security for the club. Barcelona club is an example of a CIC working well, showing the community model can still bring in big money and increasing interest.
Krasner stated, ‘aside from an overseas benefactor, community ownership is the only viable long- term solution for many clubs.’ Both the government and HMRC are currently supporting this company model which will likely give an incentive for clubs to review their business structure.

A CVA can give struggling football clubs the space and time to revaluate and restructure the business in order to find a suitable way forward as well as protect the club against aggressive creditors. Some clubs have even entered administration before using a CVA. Have a look at our page on football clubs and CVAs for more information.

Monday, 25 November 2013

GP firm, MP Locums, wins two big contracts whilst in a CVA

Who says the CVA doesn't work? Below is a good example of the government backing a struggling organisation:

The clear message here is that a business can still secure on-going contracts (in this case two large ones) whilst in a CVA.

This on the same day that RBS has been criticised for allegedly putting viable businesses into administration....

At least HMRC are commited to the rescue culture!

RBS blamed for knocking down failing but viable companies, for gain

Vince Cable’s advisor, Lawrence Tomlinson, has revealed publicly what many practitioners already know; that the Royal Bank of Scotland has failed to support distressed but viable companies and is, in certain circumstances, instead using them for profit.

His report claims that the bank’s Global Restructuring Group (GRG) is forcing viable companies to go bust by purposely charging high rates and fees, and then selling off the business assets cheaply to make a profit in its own West Register company.

Lawrence Tomlinson, who works for the Department of Business, Innovation and Skills as an advisor has compiled the damning report and is calling for an investigation by regulators.

The main criticisms and/or complaints were the following practices;

  • Property revaluations without site visits, and mistakes in documentation
  • Property taken over by RBS subsequently sold for a price higher than the bank's own valuation.
  • In one "very clear example" the reasons a business was put into GRG "changes throughout the conversation"
  • One business submitted evidence that in fees alone, their time in GRG had cost them £256,000
  • Small loan breaches forcing companies into much more expensive arrangements, leading to the inevitable collapse.

Business secretary, Vince Cable, has passed the information on to the FCA and PRA to investigate further. The report has been published at the same time as a review (commissioned by RBS) by a former Bank of England’s official, Sir Andrew Large. He looks into issues with SME lending and GRG’s role in the organisation.

RBS have said in a statement, ‘GRG successfully turns around most of the businesses it works with’ but ‘not all businesses that encounter serious financial trouble can be saved.’

Tomlinson believes that small companies are being pushed to the edge, even if they were not struggling to begin with but have faced a few financial problems.

On BBC radio today a hotelier was interviewed who had lost his hotel following a crippling interest rate swap that went bad.  The hotel was sold at a knockdown price to the property investment subsidiary of RBS, West Register.

It is KSA’s view that turning around viable but distressed companies should be the focus of these bank departments, by giving financial support and to help these businesses stay alive, wherever possible.  But if they cannot be kept afloat as is often the case, then any sale of assets forced by administration should not be to the bank’s own companies.

The issue of how finance firms including banks have perhaps exploited struggling but viable businesses has been the topic of much discussion.  See this much publicised issue last year about invoice finance firms.

In addition many banks have assumed that any business that is proposing a company voluntary arrangement (CVA) is such a high risk that they call in the loan.  An agreed CVA does not bind the secured creditor and in many ways put the bank in a better position than previously.  The CVA removes risk of winding up petitions once approved.

The banks still have the ability to enforce their security, but are often don’t give the company the chance to try and trade out of it.

One of our clients asked their MP to question why RBS would not continue to provide a small overdraft to it, once the company had a company voluntary arrangement (CVA) approved by its unsecured creditors.

The RBS Chief Executive of Corporate Banking Chris Sullivan wrote back to Philip Dunne MP, stating that because the company had entered into a CVA it was considered insolvent; “and in line with the Bank’s (sic) policy not to provide banking and debt facilities to insolvent companies, the facilities were withdrawn and proposals for repayment of the debt requested”. Fortunately, we were able to find another funder for the company and it is trading on.

Finally the issue that has yet to be highlighted is the so called “panel system”.  Each bank has its own panel of insolvency practitioners to whom it gives all work.

What is often galling for KSA and other smaller turnaround firms, is that we are often the architects of a viable restructuring plan. The debtor company approaches us for help in cost cutting, financial re-engineering, turnaround and recovery, we set up strategies to do this and work closely with our clients. We then take the business’s rescue plan to the bank’s recovery teams and then we are asked to politely get lost. This is because the banks all operate a so called “panel system”.

Ostensibly this is to ensure “value and quality advice is obtained for the bank” and or the company from regulated approved insolvency firms. In reality the panel firms are doing the company no favours, because they are effectively a bank appointee, whom the company’s board do not want to work with but whom they must pay, because the bank insists upon it.

So to add insult to injury, the directors of a distressed but viable company may engage KSA or other effective insolvency and turnaround firms, to build a workable plan, but as soon as the bank passes the case to GRG or its equivalent across the other banks, the company has a panel firm, whom they have never met, foisted upon the company to drive a recovery.

Recovery for whom? 
Often it’s the bank putting its own interests before the body of all creditors. And giving the resultant insolvency work to their small group of friendly panel firms, before sometimes selling assets to the bank’s own companies.  Clearly secured creditors have fixed charge priorities over other creditors and floating charges to back this up. But the Enterprise Act set out a company rescue culture that is not being supported by West Register and the like.

KSA is not moaning because we want bank work, far from it. Obviously very large insolvency cases such as Lehmans require large insolvency/accountancy practices to cope. But for all other insolvencies we simply want banks to recognise that there are many able recovery and turnaround firms like ours who can work with viable, but struggling companies, to restructure them and their debts. A level playing field is all we ask. We cannot be right or successful in every rescue case, of course, but when we are summarily dismissed and replaced by bank advisors, that is far from a level playing field?

It is our belief that the bank’s insolvency advisory panel system is a closed shop, this is anti-competitive and it is, along with banks recovery teams knocking down viable companies is undermining the UK rescue culture.

Friday, 22 November 2013

Hearts CVA meeting is postponed

Administrators for Hearts football club, BDO, have announced a creditors meeting due to be held today, has been cancelled. Plans to discuss a company voluntary arrangement have been put on hold to allow time to review the situation.

The club is in debt of £28 million and has been in administration for the last five months. Supporters of the club, The Foundation of Hearts, believe that a deal can still be agreed and are supporting administrators for delaying the meeting with creditors. If the club finds a buyer, it could avoid suffering penalties so this extra time (excuse the pun) will give them a chance to consider all options.

A CVA followed by administration can be a suitable solution for distressed clubs and companies, as administrators can protect businesses against aggressive creditors. It also allows enough time for a CVA to be proposed which can take a number of weeks. For more information about how CVAs can work for football clubs, click here.

Thursday, 21 November 2013

London Broncos to go into administration

The super league club plans to go into administration, after it was announced they are on the fixtures list for next year. They have called on lawyers to file a Notice of Intention to appoint administrators for the club. It has seen a number of staff and players leave and is still looking for a venue for home games; currently the Broncos have only five players on their books. It’s also been reported that no one employed by the club has been paid their latest monthly salary.

The administrators are to be brought in to protect the Broncos against creditors and to allow the club some time to work with the Rugby Football League. The aim is to resolve the current issues surrounding the club – there are talks of a move to The Hive with the chairman of Barnet FC, however only if the club carries no debts.

If a club becomes insolvent, regulations state they will lose six competition points. If RFL’s review is accepted by clubs, this number could be doubled.

For more information, visit our page on notice of intention and how it can provide companies some breathing space and protection from aggressive creditor actions.

Wednesday, 20 November 2013 saved by pre-pack administration

Online fashion retailer, Meemi Limited (trading as has been brought out of administration by a pre-pack sale. This result has saved 48 jobs, including a former senior fashion editor at Harpers Bazaar, Carmen Borgonovo.

After on-going poor cashflow and increasing losses, Growth Capital Acquisitions Limited bought the failing business in a pre-pack administration deal. On the 18th November, Leonard Curtis Business Solutions Group were appointed administrators and commented ‘we have completed the sale as a going concern. The outlook for is extremely positive’.

The retailer was founded in 2006 by Andrew Curran and has since had a number of cash injections and support to continue trading. However, it eventually ran out of money to continue so administrators were brought in. is now under a total restructure to accommodate these changes, with the aim to create a successful and profitable business from 2014.

Pre-pack administration

While there is some debate as to whether pre-pack is a suitable insolvency option (as it is often sold back to the directors), it is a very quick process and can get rid of debt, save jobs and allow a business to continue trading.

For more information on pre-pack administration, visit here

Tuesday, 19 November 2013

Will there be a freeze on business rates?

There is increasing pressure from the media, including The Daily Telegraph, to freeze business rates for small shops and companies across the UK, in a bid to help businesses survive. If approved, rates will be frozen from 2015.

Potentially crippling business rates have now overtaken the cost of renting for shops and companies; they are now urging George Osborne to address this situation next month in the Autumn Statement. Companies want business rates to be frozen to allow time to review the current tax system so appropriate changes can be made.

According to reports, rates have increased by 23% in the last five years with a further 3.2% rise planned for next April. This is not reflective of the rents that many retailers pay since rates are not based on current rental levels post credit crunch.  Retailers believe the tax system is ‘outdated’ and needs to be modified in order to improve the overall economy.

There are also talks of rate cuts in Scotland with an announcement expected to be released over the next few days.

We can help businesses who are falling behind with their business rates, have poor cashflow or are simply in need of insolvency advice. If you’re looking to cut costs in your company, read our guide to cost cutting.

The local council’s business rates are in fact an unsecured debt and as such any arrears can be partly written off in a CVA. Call us on 0800 9700539 and speak to one of our CVA experts.

Monday, 18 November 2013

Are zombie firms threatening a productive economy?

The threat of ‘zombie companies’ is in the news yet again, with research by The Adam Smith Institute indicating that 108,000 firms are only just breaking even. The think tank believes these zombie companies stop the productivity of the economy by preventing new, dynamic businesses entering the market. The institute claims that investment and labour should be restructured to support up and coming businesses, to avoid a delay in the UK’s recovery.

Low interest rates and the banks’ priorities are said to be part of the blame for firms standing still with reports further showing a fall in insolvencies. This shows that fewer firms have the opportunity to be restructured and turned around to reach a profitable stage.

We believe that many zombie firms are viable, especially if they have survived the last few years of a struggling economy. The threat of zombie companies can be seen as overstated; with the right management, help and guidance, businesses can become profitable. We advise companies ensure there is effective financial management in place, with a daily or weekly cashflow model providing up-to-date records and procedures.

As turnaround specialists, we can help revaluate and restructure your company to offer on-going solutions and hopefully improve profit margins. Have a look at our directors’ tool kit for businesses - you can download our cashflow template here.

Friday, 15 November 2013

Proposal for energy company Vphase to be placed into a CVA

Earlier this year, BDO was appointed administrator of the alternative energy company Vphase Plc. and Vphase Smart Energy Ltd., both based in Chester. It has now been revealed a CVA proposal has been approved at a creditors meeting. The aim of this is to give unsecured creditors a chance to see return.

Founded in 2004, Vphase has suffered trading problems due to recent government rulings, like the Green Deal and ‘bedroom tax’. As an alternative energy company, they were finding that housing associations and local councils wanted to use less of their services in a bid to cut down energy bills. The impact of the bedroom tax showed that tenants would struggle paying their bills on top of paying for energy efficient services. Vphase tried to continue trading by applying for additional funding, however, this unfortunately failed and administrators were appointed this September.

One of the largest shareholders, Henderson Group Plc., has agreed to the CVA in order to benefit creditors as well as maintain some of the control in the company. Usually CVA's can only be approved at a meeting if 75% of creditors “by value” agree to the proposal. In this case, Henderson had control over the whole process. It has been reported that creditors will receive dividends of 55p in the £1; note that if the CVA had not been accepted, it would only be 36p in the £1.

The company’s assets were sold after the business was placed in administration, however the CVA still needs to be approved by the court in order for debt to be repaid to unsecured creditors. A CVA is a way of exiting the administration to keep the company trading as well as keep costs down. For more information, visit our administration followed by CVA page:

A CVA is a powerful tool in the insolvent process and can act as a cost-effective alternative to administration.  By reviewing and restructuring the business, it can turn a company around and improve cashflow as well as stop pressure from VAT and tax. Find out more in our video below, where Keith Steven explains what a CVA is and how it can benefit your situation.

What is a CVA?

If your company is struggling but you believe it is a viable business, we can help! Call us on 0800 970 0539 for free advice on the options available to you.

Thursday, 14 November 2013

Red Architectural goes into administration

Construction company, Red Architectural Ltd., and its sister company, Red Aluminium Ltd. have entered administration. Deloitte have been appointed as administrator and have stated they are only advising staff and customers at this stage.

Based in Cheshire, the 40-year old company provides roofing, glazing and general engineering services. It previously worked on Central Park in Manchester as well as the Westfield shopping centre in Stratford, London; In 2012, their turnover was £29.7 million. Deloitte have indicated Red will trade out existing contracts for a short period of time until there can be a wind down of the company.

For some small construction companies, ever increasing costs can be a struggle if they already have fixed contracts, causing cashflow issues if the company takes on new contracts without being paid. If your firm is having financial problems, please do not hesitate to contact us on 0800 9700593. Do also visit our case studies page on rescuing construction companies.

Wednesday, 13 November 2013

Late payments are a greater threat than insolvency

Claims for late payments in 2013 have almost doubled from the previous year, says Coface UK, the credit insurance firm. Their findings suggest ‘customer insolvency’ and protracted default are beginning to outweigh insolvency claims. In 2012, across 590 clients, just 33% of claims were protracted default, compared to 67% insolvency claims. This year, 60% of claims were due to late payments from customers and 40% were classed as customer insolvency.

These figures represent a decline in firms entering insolvency each year, however, in the current economic climate, many businesses are still fragile. Andrew Share, Director of Information, claims and connections at Coface UK, commented, ‘low interest rates and favourable credit conditions mean that businesses are able to survive, although many are just treading water unable to grow or invest.’

To protect against these credit issues, it is vital firms have credit management procedures in place to limit the risk of late-paying customers. If you need support in restructuring your company or would like more information on insolvency, please visit our page ‘Is your company insolvent?’ or call us on 0800 9700539.

Tuesday, 12 November 2013

KSA Group Insolvency Notice

Alimour Limited Creditors Voluntary Liquidation Notice

Meeting of the Creditors of the above named Company will be held at KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 21 November 2013 at 12.15 pm.

See full notice below;

British Business Bank’s Investment Programme to provide £125m debt finance to small businesses

Business secretary, Vince Cable, recently announced the Programme’s first £45 million of funding will be allocated to Praesidian Capital Europe and BMS Finance to help provide small businesses secure the finance they need to flourish. Both Praesidian and BMS lend to small and medium sized businesses in the UK and are working with the British Business Bank to give as much support as they can to small businesses across Britain. It’s expected these funds will be released at the beginning of 2014, and will increase in size as businesses grow.

Vince Cable has also proposed plans to provide £1million to the Sector Mentoring Challenge Fund, £10million to the Biotechnology and Biological Science Research Council and to provide support to the Growth Accelerator scheme. They all offer advice and guidance to small business owners to help improve their firms through a number of measures.

With banks reluctant to lend to small businesses and entrepreneurs over the last few years, the Investment Programme launched back in April to tackle financial issues and certain barriers many small firms are faced with. So far, £1.3billion in loans have been arranged by the British Business Bank. The Bank’s total amount of funds in the Investment Programme is £300 million.

For more information and tips on refinancing your company, visit our page on debt finance and refinancing procedures.

Monday, 11 November 2013

Barratts in administration for the third time!

1,000 jobs are are risk as the footwear retailer has entered administration for the third time, with Duff & Phelps appointed as administrator. They admit that redundancies and store closures may be on the cards but as of yet, the future status of the business is unknown.

Unfortunately, an offer of £5 million to support the business was withdrawn on 7th November, leading to the present situation. Partner of Duff & Phelps, Philip Duffy, admitted 'the directors were left with no choice but to appoint administrators.'

Barratts previously went into administration in 2009 and 2011 with 4,000 jobs at risk at the time. This goes to show how the business has tried to downscale over time in the hope to continue selling.

We are not involved in the administration and questions should be directed to Duff & Phelps who are handling the administration.

If you are an employee of the business, and are worried, then please listen to the video below as it will tell you your rights as an employee of a business that is insolvent.  There is a link at the end of the video to the Government website which expands further on what you need to know.

Friday, 8 November 2013

98 UK publishers have closed down over the last year

According to recent figures, there has been a 42% increase in publishers entering insolvency over the last 12 months. The accounting firm, Wilkins Kennedy, reported that 98 publishers went bust this year, compared to 69 last year. 100 year old publisher, The Evans Brothers, was sadly one of the companies affected; they were the original publisher of the famous children’s author, Enid Blyton.

The cause behind the sharp fall in publishers is undoubtedly the impact of eReaders and discounted booksellers like Amazon Marketplace and supermarkets. Consumers now have easy access to ebooks and discounted second-hand books, generally offered at a fraction of the price compared to traditional booksellers. Partner of Wilkins Kennedy, Anthony Cork, commented ‘The rise of Amazon and other ‘discount’ sellers with massive buying power means the pressure on publishers’ margins is now immense’.

Ebook sales reached £216 million in 2012, an increase of 134%. While printed book sales stood at £2.9 billion in the same period, sales actually fell by 1%. Ebooks are caching up rapidly and there is no sign of this changing anytime soon.

It‘s no surprise that the publishing industry is dramatically changing. There will always be ongoing need to restructure businesses to incorporate online media and ensure there is a digital presence.

If your company is struggling, please contact us on 0800 9700539 and speak to one of our insolvency experts.

Thursday, 7 November 2013

Law firm Follett Stock closes and KMPG is appointed liquidator

With the introduction of the Legal Services Act, the SRA are clamping down on firms that pose a risk to clients and are quick to take action if a business is failing. The latest case, Follett Stock, has been closed down by the SRA in order to protect clients and beneficiaries – the firm had offices in London, Bristol, Truro in Cornwall and Exeter. Usually it can take up to three weeks to put a company into liquidation but with SRA’s intervention, immediate action can be taken.

Director of client protection at SRA, Helen Herniman, stated, ‘In cases like these where the firm has become insolvent, we can only intervene once all other options have been exhausted. We have had to intervene on this occasion as there was a clear risk to clients' interests by the firm’s financial difficulties’. As a result of winding up petition ordered against Follett Stock, 30 staff at the London and Truro offices were made redundant.

While law firms are facing a tough time, the best thing a struggling company can do is to consider turnaround options for the business before it is too late and the SRA takes over. If you have cashflow issues, declining sales or your business is falling behind on PAYE and VAT payments, we can help. We act as a ‘fresh pair of eyes’ and can assist with the revaluation and restructure of the company to find a way forward.

If you would like insolvency advice and support, please call us on 0800 9700539 or speak to our expert on legal matters, Grant Jones, on 07815 873370.

Wednesday, 6 November 2013

Britain’s economy is exceeding expectations in 2013

According to a recent survey collected by Markit and the Chartered Institute of Purchasing and Supply, Britain’s economy is expected to show signs of strong growth in the fourth quarter. It has been reported there may be a rise of as much as 1.3 percent in the last few months of 2013. Even more promising, Markit has revealed that the general employment sector is the strongest it’s ever been. These findings have also been supported by the Institute of Chartered Accountants, who expect the same outcome later this year. The EU predicted a growth of just 0.6 percent but now their projections have more than doubled, indicating a positive year ahead. In addition, with UK unemployment figures expected to drop from 7.9% to 7.3% by 2015, it is yet another indicator of a recovering economy.

There are warnings, however, to be vigilant with these survey results, suggesting there is still an ever increasing gap between economy growth and the earning wage. The recent boom in the housing market (created by the Help to Buy mortgage scheme) has also given doubt as to how long this position can be upheld and continue to have a positive impact on economic growth.
Furthermore, if unemployment figures continue to drop, The Bank of England will need to retract this year’s earlier statement and propose a rise in interest rates.

For insolvency market watchers what does this mean? 

Interest rates rises have long been expected to be the catalyst for business failures as many firms are just managing to pay the interest on their loans.  These so called “Zombie Companies” are regarded as a risk to the economy’s sustainability if these firms were unable to pay higher rates.  Thus it pays to not be complacent.

In addition, even in times of booming growth, there is a risk of businesses going into insolvency.
Why is that?   This happens because creditors get tougher when they believe there is a better chance of getting the money back. If a business or ‘zombie company’ cannot survive, then the bank will want to call in the loan if there are profitable assets. In order to lend to growing companies, the bank may well have to stop lending to a failing one which can then lead to insolvency.

If your company is struggling and you need advice or support, please do not hesitate to call us on 0800 9700539

Tuesday, 5 November 2013

October 2013 winding up petitions down on last year.

In October 2013 the number of petitions advertised was just 476 in October 2012 the number was 580 and in October 2011 it was 704.  So the numbers of petitions are still declining

HMRC are now less inclined to send warnings and are moving straight to issuing petitions or using distraint. To see the latest list of companies then go to  They do appear to be targeting construction and contracting firms at the moment.

So if HMRC threaten any kind of legal action for the recovery of any tax debts it will either be distraint or a winding up petition.  Distraint can be particularly awkward as they will turn up to your registered office and demand goods be taken away in 7 days if the debt is not paid.  In many cases companies have their registered office at the home and anything belonging to the company, such as car, could be their target.

If you get a visit from HMRC field officer then call us and we will see if we can help.  In many cases it is not too late to save the business.

Call us on 0800 9700539 to find out your options.

Monday, 4 November 2013

KSA Group Insolvency Notices

Parsons Dowd Psychological Liquidation Notice

Meeting of the Creditors of the above named Company will be held at The Holiday Inn Express Newcastle Metro Centre, Clasper Way, Swalwell, Newcastle upon Tyne, NE16 3BE on 15 November 2013 at 11.15 am

See full notice below;

Matchbet Limited Liquidation Notice

Meeting of the Creditors of the above named Company will be held at The offices of KSA Group Ltd, Level 7, Tower 42, 25 Old Broad Street, London, EC2N 1HN on 18 November 2013 at 10.30 am

Full notice below

SRA stops law firms taking on new business if no professional indemnity insurance

Professor Grant Jones
Insolvency Lawyer
More than 150 firms are still trying to get professional indemnity insurance (PII) cover a month after the 1 October deadline.  These firms will be prevented from taking on new business by the SRA and ultimately will have to shut down if they cannot get enough cover.   The deadline for obtaining cover is the 29th December 2013

It's been a difficult year for PII renewals with a massive regime change implemented by the SRA aimed at stabilising the market.

The cost of the PII premium was the immediate cause of the demise of Midlands firm Hacking Ashton a meeting of creditors heard. The firm is now in administration.

Experts warned of higher premiums at the bottom of the profession but it will be some time before the true picture is known.

If your firm is unable to obtain insurance then obviously it cannot continue.  However, if your firm has had to pay much higher premiums to practise, and it is putting pressure on cashflow, then there may be solutions. Have a look at our help for lawyers pages on KSA Group.

If you want to talk to our expert on legal matters and insolvency.
Talk to Grant Jones on 07815 873370 or

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