Walker Morris has taken on a 27-strong finance litigation team from Cobbetts, as full details of the financially stricken firm's pre-pack acquisition by DWF emerge.

DWF has completed its expected acquisition of the bulk of Cobbetts' business, following yesterday's appointment of KPMG as administrators.

The deal will see 419 of Cobbetts' 491 staff transfer over to DWF in the coming weeks. However, Cobbetts' two-partner finance litigation team, led by partners Andrew Bennett and Ciaran Corry in Leeds, is joining Walker Morris due to what DWF describes as "potential commercial conflicts following DWF's recent merger with Fishburns". DWF's merger with professional indemnity firm Fishburns was completed just last week (1 February).

DWF's acquisition of Cobbetts also does not include Cobbetts' debt recovery team, Incasso, which has around 50 employees. In a statement, the firm said that it is "supporting those involved, including assisting in the day-to-day management of client affairs for the immediate future, whilst the long term direction of the business can be determined."

A KPMG spokesperson said: "Incasso, as a separate entity, is not in administration, it is trading and KPMG is seeking a sale of the Cobbetts interest in the business."

In the firm's statement announcing the deal, DWF also confirmed that it will honour all training contracts taken on as a result of the acquisition, including both those already in place and those yet to start.

Walker Morris, which has been advising Cobbetts' creditors Lloyds TSB, said it had been made aware of the availability of the banking litigation team last Thursday (31 January) and saw it as too good an opportunity to refuse. The team is expected to move across to Walker Morris' Leeds office over the next four weeks, bringing the firm's banking litigation team up to five partners and 47 fee earners.

Walker Morris managing partner Ian Gilbert said: "It became apparent at the end of last week that there could be a conflict issue for the team and the insurance clients at DWF. We viewed the opportunity as an attractive proposition which would complement what we already have, improve our skill set and is consistent with our approach."

DWF managing partner Andrew Leaitherland said: "This is the latest milestone in what is already proving to be a positive year for DWF and one that continues along our clearly defined plan of strategic growth. It's crucial that when exploring deals such as these we are certain that the move is the right one, and we're extremely confident that this is the case."

Mark Firmin, joint administrator and UK regions head of restructuring at KPMG, added: "In the current economic climate we are delighted to have brokered a deal that saves more than 400 jobs. We have moved swiftly, working in collaboration with a number of stakeholders including the Solicitors Regulation Authority to conclude this deal between Cobbetts and DWF. This is a strong result and an important step forward for DWF in the market."

KPMG was advised by Pinsent Masons, which instructed Peter Arden QC of Erskine Chambers and partnership and insolvency barrister Martha Maher of St John's Chambers in relation to obtaining the administration order.

The order was obtained in the High Court of Justice, Chancery Division yesterday (6 February) at 3pm before Mrs Justice Asplin.

Lloyds TSB has been advised by a Walker Morris team led by banking, restructuring and insolvency partner Simon Clark.