Marsden Rawsthorn administration details revealed
Marsden Rawsthorn owed £4.3m to the Royal Bank of Scotland and a further £500,000 to unsecured creditors and folded in February. Following a management buy-out, 80 jobs were saved and the new company began trading as Marsden Rawsthorn Solicitors Ltd.
A creditor’s report from administrators KPMG notes that the buy-out involved 10 partners paying £1.24m for the purchase through a pre-pack insolvency.The move avoided intervention by the Solicitors Regulation Authority, which would have incurred significant costs, and may have led to the business being broken up and sold. KPMG says the pre-pack deal represented the best value for creditors.
Debbie Pettitt, chief executive at Marsden Rawsthorn, said: “We had been in dialogue with RBS since last year regarding a solvent restructure of the LLP, and it was hoped that we would come to a mutually acceptable agreement.“However, at the last minute, RBS closed negotiations and left us with no choice but to undergo an insolvent restructure of the business. By entering administration, we safeguarded jobs and protected both clients and creditors.” Marsden Rawsthorn LLP’s accounts, dated April 2011, showed a pre-tax profit of £1.1m on turnover of £4.3m.