Welcome to Manchester Confidential
Reset Password
The Confidential websites will be undergoing routine updates. This may cause the sites to go offline. We apologise in advance for any inconvenience.

You are here: Manchester ConfidentialNews.

Halliwells partners face new cash crisis

2010 loans means £2m headache for collapsed firm

Published on September 3rd 2010.


Halliwells partners face new cash crisis

Partners in collapsed Manchester law firm Halliwells may have to repay more than £2m in bank loans taken out this year, according to The Lawyer.

A voluntary cash call by the firm at the start of this year saw 28 partners contribute a total of £2.3m, through professional practice loans (PPLs) from The Co-operative Bank.

Those loans saw partners’ contribute between £20,000 per equity point and £10,000 per point after a request from the Royal Bank of Scotland, which had a £19.8m loan facility with the firm.

Partners will now be expected to pay back outstanding loans with The Co-op and earlier loans taken with Handelsbanken in 2008. The Lawyer claims some partners are liable for more than £500,000.

A spokesperson for The Co-op told the magazine: "We can confirm that The Co-operative Bank does have professional practice loans in place with Halliwells partners. However, due to customer confidentiality we are unable to discuss specific details."

Halliwells had 40 equity partners at its peak, who are facing collective liabilities of up to £3m on its previous Manchester office in St James's Court, which it left in 2007 to move to Spinningfields despite not having an agreed break in its contract until 2013. Several partners acted as guarantors for the move.

The firm issued notice of intention to appoint administrators in June and the business has been broken up during the last few months.

Like what you see? Enter your email to sign up for our newsletters which are chock-a-block with more great reviews, news, deals and savings.

To post this comment, you need to login.Please complete your login information.
OR CREATE AN ACCOUNT HERE..
Or you can login using Facebook.

Latest Rants

Anonymous

Repeating,without any evidence the same point that socialism = public services is hardly…

 Read more
Anonymous

You absolutely right,I hate all these bloody nimbys stopping development and progress.Of course if…

 Read more
Anonymous

Manchester's size and climate isn't dissimilar to Rotterdam or Dusseldorf but the city is held back…

 Read more
Anonymous

Straying off the point again David, which is that investing in public services is socialist but as…

 Read more

Explore The Site

© Mark Garner t/a Confidential Direct 2017

Privacy | Careers | Website by: Planet Code | SEO by The eWord