Future of building society thrown into doubt after it is landed with £2m court bill
Manchester Building Society has been told it will have to pay almost £2m in court costs in relation to a case involving accountancy firm Grant Thornton.
The building society was awarded damages of £335,727 following the original High Court Case but was warned to expect a bill for court costs.
This afternoon it was announced the building society will have to pay costs of £1.97m by the middle of next month.
There are concerns for the long-term prospects of the building society following the announcement.
On May 2, the High Court awarded damages of £335,727, including interest, to the Society regarding a case relating to audit services carried out by Grant Thornton UK, the former auditors of the Society.
The Society admitted the award was “considerably below” the £49m it originally claimed.
The building society released a statement to the Stock Exchange this afternoon.
It read: “Further to the announcement regarding the outcome of the court case Manchester Building Society v Grant Thornton UK LLP and further to the announcement regarding the costs hearing for the case, the amount of interim costs payable by Manchester Building Society to Grant Thornton has been calculated.
“The amount payable is £1,973,215, to be paid by 15 June 2018. This amount is net of the damages awarded to the Society and the interim costs Grant Thornton were ordered to pay to the Society.”
The building society is in discussion with the Prudential Regulation Authority as a result of the ruling.
An earlier statement said: “The Society continues to discuss and consult with the PRA on the future strategic and capital position of the Society.
“The outcome and timing of the regulatory process is uncertain. There continues to be material uncertainty regarding the Society’s long term prospects.”
