Nine partners who bailed out of Halliwells just before it collapsed have been told they won't have to pay a fortune to the firm's liquidator.
In 2010 Sue Liversidge led the partners out of the firm and set up the Sheffield office of rival Kennedys. They signed a retirement deed in March before heading off to celebrate their new good fortune with an arse-clenchingly awful video to the tune of Don't Stop Me Now by Queen. And a few weeks later Halliwells went belly up, and so it seemed they had dodged a full Kalashnikov of bullets...
Except the liquidator reckoned that the partners had each taken drawings of £125,000 in anticipation of profits that were never made. As such this money should be returned and distributed amongst the firm's creditors. But the High Court has disagreed and ruled that the deed protected the departing partners from any future claims, much to the joy of the firm's unsecured creditors who continue to face a deficiency of over £200m*.
The partners who managed to exit just before the whistle was blown are now able to spend the money as they like. Presumably their next video will be to the tune of Gold!, Sweet Escape, We Didn't Start The Fire or We Gotta Get Out Of This Place. Except....
.... the liquidator said that its lawyers do not accept the Court's decision, so it seems the story may not yet be over. A spokesman added that the liquidators "continue to pursue multiple other avenues to maximise recoveries for creditors, including action against partners who have sought immunity from liquidation claims".
So don't spend that £125k yet.
*£200m? £200m?? Seriously, how can any law firm get in hock to the tune of a fraction of that without anyone realising that something might be up?
Tip Off ROF
In 2010 Sue Liversidge led the partners out of the firm and set up the Sheffield office of rival Kennedys. They signed a retirement deed in March before heading off to celebrate their new good fortune with an arse-clenchingly awful video to the tune of Don't Stop Me Now by Queen. And a few weeks later Halliwells went belly up, and so it seemed they had dodged a full Kalashnikov of bullets...
Except the liquidator reckoned that the partners had each taken drawings of £125,000 in anticipation of profits that were never made. As such this money should be returned and distributed amongst the firm's creditors. But the High Court has disagreed and ruled that the deed protected the departing partners from any future claims, much to the joy of the firm's unsecured creditors who continue to face a deficiency of over £200m*.
The partners who managed to exit just before the whistle was blown are now able to spend the money as they like. Presumably their next video will be to the tune of Gold!, Sweet Escape, We Didn't Start The Fire or We Gotta Get Out Of This Place. Except....
 |
Sue Liversidge. She's happy. Because she doesn't have to pay £125k to her old firm's creditors. |
.... the liquidator said that its lawyers do not accept the Court's decision, so it seems the story may not yet be over. A spokesman added that the liquidators "continue to pursue multiple other avenues to maximise recoveries for creditors, including action against partners who have sought immunity from liquidation claims".
So don't spend that £125k yet.
*£200m? £200m?? Seriously, how can any law firm get in hock to the tune of a fraction of that without anyone realising that something might be up?
Comments
7
6
6
7
3
4
7
6
6
5