BDO issues £21m claim against ex-Halliwells partners
THE administrators of failed Manchester law firm Halliwells have issued a £21m claim against 32 partners who took money out of the firm following its controversial Spinningfields property deal.
It has filed the claim in a bid to recoup most of the £24.5m paid out to ex-partners in a “reverse premium” deal in 2007 after signing the lease for its 3 Hardman Square headquarters.
The partners facing claims include ex-managing partner Ian Austin and senior partner Alec Craig.
BDO has appointed law firm Addleshaw Goddard to pursue the action against former partners and has warned them to keep any money received the deal on trust.
The action follows a decision by ex-partners to settle a £3m claim with Himor Group over the lease of the company’s former St James’s Court headquarters in Manchester.
Last month, joint administrator Dermot Power of BDO wrote to the former partners warning them of potential action. At the time, Mr Power told TheBusinessDesk.com that the letter was “the culmination of one of the phases of the forensic work.
He added: “I expect this will be the first stage in some quite complex litigation.”
BDO has recently had its administration period in charge of Halliwells extended for another year. In the run-up to the firm’s collapse last June, it managed to hammer out a deal which saw most of the partners join either Gateley, Hill Dickinson or Barlow Lyde & Gilbert.
Some 30 of the 32 former Halliwells partners are being represented by law firm Peters and Peters. It said: “The administrators’ claim is categorically and absolutely resisted.”
