Cobbetts administration bill reaches £1.7m for six months' work
The administration of Cobbetts, a regional law firm that collapsed this year, incurred expenses of £1.7m between 6 February and 5 August, according to a six-month progress report by administrators KPMG. These include £352,289 in legal costs, of which £169,367 was paid to Pinsent Masons for its work for the LLP prior to KPMG's appointment.
September 18, 2013 at 10:20 AM
2 minute read
The administration of Cobbetts, a regional law firm that collapsed this year, incurred expenses of £1.7m between 6 February and 5 August, according to a six-month progress report by administrators KPMG.
These include £352,289 in legal costs, of which £169,367 was paid to Pinsent Masons for its work for the LLP prior to KPMG's appointment.
Since the adminstrator was brought in, Pinsents has also been paid legal fees totalling £38,640 for work conducted during the first six months and £41,183 in fees for advice provided outside the report's period.
Pinsents partner and Leeds office head Jonathan Jeffries has been paid £25,225 for his work as solicitor manager to oversee the transfer of client funds to DWF, which acquired Cobbetts in a pre-pack takeover, and comply with Solicitors Regulation Authority requirements.
A KPMG team headed by joint administrators Mark Firmin, Brian Green and Howard Smith has so far incurred £608,000 in time costs, at a blended rate of £328 per hour.
In April, a committee of unsecured creditors decided KPMG would be authorised to draw fees of £300,000 on account from the assets of the LLP, which the firm did after 5 August.
In April, it was revealed Cobbetts had total liabilities of more than £90m prior to its collapse.
Secured creditor Lloyds Bank is set to recoup about £2.5m of the £7.3m it is owed, although the joint administrators are yet to determine the total securities available to the bank.
Cobbetts entered administration in February after being hit hard in the wake of the credit crunch. In its pre-pack takeover DWF paid a guaranteed £3.9m for Cobbetts' assets and work in progress.
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