Linder Myers agrees solvent rescue
CREDITORS have agreed a debt-restructuring package with law firm Linder Myers, which will see it avoid administration.
The Manchester firm, which has offices in Preston, Chester, Lytham and Shrewsbury and employs more than 300 people including 51 partners, said it intended to appoint administrators last month after a tough period of trading.
Since then, the firm’s management team has been working with consultancies Jepson Holt and Assure Law and restructuring specialists at Duff & Phelps and its bank’s adviser EY to find a way forward.
While not acquiring Linder Myers, Assure Law, run by Tony Stockdale, a former managing partner of accountancy firm Bentley Jennison, is investing in the business. Mr Stockdale will become chief executive of the firm while current managing partner Bernard Seymour will move to senior partner.
Mr Stockdale said: “Linder Myers is not the first, nor sadly the last practice to hit difficult times within a sector being impacted by a number of changes which are placing a real squeeze on law firms.
“The team at Assure Law have worked hard with all the other parties involved to facilitate a successful outcome. The refinancing of the firm’s debts will result in a strong balance sheet and provides a stable base from which Linder Myers can focus on organic growth.”
Bernard Seymour, senior partner at Linder Myers said: “This is a very positive outcome for the business, its employees, our valued clients and business partners. Tony Stockdale brings significant experience and we are pleased to welcome him to Linder Myers as we look forward with confidence to the future.”
“The environment in which law firms find themselves operating, has never been more challenging, with unprecedented changes placing increasing pressure on firms. We are delighted that Assure Law has enabled us to create a foundation for a successful future.”
Tom Jack, restructuring partner at EY commented “The refinancing of Linder Myers represents a very positive result for the firm and its clients, staff and creditors and ensures it is now well placed to begin a new phase in its long history.
“This innovative refinancing solution has avoided administration and intervention by the Solicitors Regulation Authority, whilst preserving the jobs of approximately 300 partners and staff. A consensual approach such as this will no doubt be of interest to a sector that continues to experience a number of diverse and significant challenges”.
The Duff and Phelps Manchester team led by Sarah Bell and Paul Smith with the assistance of Steve Billot were lead advisers to Linder Myers.
Managing director Paul Smith said: “From day one our primary objective was to find a solvent and consensual solution to a very complex problem. We are delighted to have assisted in delivering this which has involved the support of various stakeholders. We wish the practice all the best in the future.’’
TheBusinessDesk.com revealed the involvement of Assure Law earlier this month after the breakdown of talks with Midlands firm HCB, which was exploring a pre-pack deal.
Former law firm managing partner Phil Jepson of legal consultancy Jepson Holt,
introduced Linder Myers to Assure Law said: “This is a ground breaking transaction in the legal market and it is great for the legal profession and for Manchester that we have saved a substantial law firm from failure and created a template for others to follow.”
