Irwin Mitchell has been instructed by a group of former Halliwells partners to fight claims that they are liable to repay drawings paid out in the months leading up to firm's collapse.

The firm has been appointed by 14 former fixed-share partners at Halliwells to fight claims by Halliwells' administrator BDO that they should repay some drawings paid out in the months running up to the firm's collapse into insolvency on 20 July 2010.

The appointment comes after Legal Week reported last month that BDO had contacted 211 former fixed-share and equity partners in an attempt to claw back drawings paid out when the firm was not making a profit. Only 77 received letters stating that they did not face further action, with the remaining 134 former partners thought to be liable to repay around £10,000 at the bottom end, with some senior equity partners potentially having to repay a low six-figure sum in overdrawings.

In addition to the letter demanding repayment of overdrawings, other former partners were told that tax overpaid on their behalf by Halliwells should be recovered for the administrators.

Irwin Mitchell insolvency partner Chris Jones said: "Irwin Mitchell in Manchester has been appointed to represent 14 individuals who were fixed-share members at Halliwells LLP during some or all of the period between May 2009 and July 2010 concerning financial demands made against them. There is no basis for these claims and we are currently liaising with the administrators."

None of the 14 former partners instructing Irwin Mitchell are at the four firms which acquired the bulk of Halliwells' assets – Gateley (which took 38 partners), Hill Dickinson (28), Kennedys (10) and Barlow, Lyde & Gilbert (20). These firms are understood to have settled any potential claims relating to overdrawings as part of their acquisitions of Halliwells' business.

News of Irwin Mitchell's appointment comes as it emerges that some of the firms buying assets from Halliwells have made additional payments to BDO relating to their acquisitions. Gateley confirmed that it paid an additional £500,000 to BDO on 10 August.

Last month (21 July) Legal Week reported that BDO had launched a claim in the High Court against a separate group of former Halliwells partners in a bid to reclaim more than £21m gained through a controversial 'reverse premium' property payout.

BDO launched the claim against Halliwells' former chairman Ian Austin and 31 other ex-partners in the Chancery Division of the High Court.

Addleshaw Goddard is advising BDO on the £21.13m claim, with litigation firm Peters & Peters acting for 30 of the 32 defendants.

The claim relates to the £24.5m paid out to Halliwells' equity partners in 2007 when the firm sold a stake in the freehold of its new office in Spinningfields, Manchester.

The majority of the so-called 'reverse premium' was distributed to equity partners – a move that has been criticised for contributing to Halliwells' later financial problems.

  • Click here for more on BDO asking ex-Halliwells partners to pay back drawings

For more on the High Court claim, click here