Halliwells partners to be questioned for report into firm's collapse
Former Halliwells partners are to be interviewed by BDO next year as the administrator attempts to determine the specific reasons for the firm's demise. BDO's Dermot Power and Shay Bannon are set to interview a significant number of ex-partners before producing a report on the period surrounding the collapse for the Insolvency Service. The report to the government body will look at whether the insolvency could have been avoided, and aims to identify whether the actions of any partners contributed to the collapse and the shortfall now facing the firm's creditors.
December 09, 2010 at 12:00 PM
2 minute read
Former Halliwells partners are to be interviewed by BDO next year as the administrator attempts to determine the specific reasons for the firm's demise.
BDO's Dermot Power and Shay Bannon are set to interview a significant number of ex-partners before producing a report on the period surrounding the collapse for the Insolvency Service.
The report to the government body will look at whether the insolvency could have been avoided, and will aim to identify whether the actions of any partners contributed to the collapse and the shortfall now facing the firm's creditors.
Power said: "We will be reviewing the situation to see if there is anything that could have prevented the firm's collapse and whether any personal actions of partners affected this in any way. We may not find blame with any single individual, but simply want to gauge a clearer picture of the situation.
"These interviews are routine procedure and simply mark the next stage in the administration process."
The news comes after five of Halliwells' creditors – including its largest secured and unsecured creditor – joined forces last month to form a committee to provide a 'sounding board' for BDO.
Royal Bank of Scotland (RBS) – which, as a secured creditor with a debenture over the firm is first in line to receive a payout – has teamed up with unsecured creditors HM Revenue & Customs; the managing agent of Halliwells' Spinningfields premises Muller Professional Services; ING Lease UK; and the landlord of Halliwells' Liverpool office, Bruntwood 2000 Beta Portfolio.
According to figures contained within the first joint administrators' report released in September, a total of £14.1m is owed to the firm's unsecured creditors.
RBS has so far recovered just over £7m from the break-up and sale of Halliwells. However, the bank had hoped to receive £12m as a result of the sales and could end up writing off as much as £15m.
Halliwells filed for notice of intention to appoint administrators in June this year, in a process which culminated in the eventual sale and break up of its business by September.
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