Challinors lender asks watchdog to intervene

ANOTHER former client of embattled Midlands law firm Challinors is understood to have complained to industry watchdog the Solicitors’ Regulation Authority about the prospect of not having loans he made to the firm paid back.

According to reports in the legal press, Solihull-based businessman Dharmendar Khag claims he gave the partnership two loans of £200,000 each.

Khag, who runs a chain of seven Subway sandwich bar franchises in the Birmingham area, wants the watchdog to intervene to help him get his money back.

Challinors announced last week that it had appointed administrators KSA Group owing to “financial difficulties”.

Reports suggest the firm owes more than £11m, with West Bromwich property investment services business Real Estate Investors owed more than £350,000.

Khag is the second client to take action to try and get loan money repaid in recent weeks.

Derbyshire games designer Cosmic Concepts claimed it had loaned £250,000 to the firm at the beginning of the year.