Administrator pursues ex Halliwells partners for £20m
THE administrators of collapsed law firm Halliwells are demanding the repayment of a £20m reverse premium which was pocketed by former equity partners following its move into its Spinningfields headquarters.
Halliwells went into administration last July. Its assets were sold to three firms – Gateley, Hill Dickinson and Barlow Lyde & Gilbert.
In a statement today administrators BDO confirmed around 32 former Halliwells partners have been contacted in relation to the payments which followed property deals relating to the firm’s former headquarters in Manchester’s Spinningfields district.
“BDO joint administrators Dermot Power and Shay Bannon (“the Administrators”) can confirm that a letter dated June 13 was sent to the partners who received a premium from the entry of Halliwells into a number of leases of different areas of a building known as 3 Hardman Square.
“The letter requested repayment of those premiums from the individuals concerned, plus interest and costs.”
Mr Power told TheBusinessDesk.com: “The letter is the culmination of one of the phases of the forensic work. I expect this will be the first stage in some quite complex litigation.”
Only 15 of the 32 partners who received income from the premium were still working at Halliwells at the time the firm went into administration. Of those, 12 of the15 were part of the corporate, real estate and insolvency teams which transferred to Gateley in Manchester.
Rod Waldie, head of office at Gateley in Manchester, said: “We can confirm that 12 partners at Gateley have received a letter from the administrators – BDO.
“This matter also involves 20 other former partners of Halliwells who are not part of this firm. The letter invites mediation in relation to a transaction entered into more than six years ago and to decisions taken in the market at that time.
“We are dealing with the matter and considering the points raised before providing a composite response.”
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