IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, July 2023

Contents

• Paul Smith, CEO
• Paul Davis, President
• Regulatory update for Insolvency Practitioners: Importance of reviewing updates to the OFSI sanctions lists
• OPBAS Supervisory Report 2022/23
• 2023 Roadshow Series: Leeds highlights
• …Next stop, Scotland! (CPD: 4h)
• Bookings are open for the 15th Personal Insolvency Conference (CPD: 6h)
• Do you know someone in the profession who deserves recognition this year?
• Discounted meeting facilities from Office Space in Town (member login required to view)
• Save money on your airport parking with APH! (Member login required to view)
• Need new IT products? Claim exclusive IPA membership offers from Dell
• CPI training with BPP – special offer for IPA members (member login required to view)
• Exclusive discounts on training from the IPA and our partners – make savings on essential CPD
• An opportunity for Registered Property Receivers!
• Case law update

A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.

Recent Insolvencies

• Law Direct Limited, an umbrella company for a number of law firms acquired by the company since it was incorporated in 2011, entered administration on 20 June. The company traded as law firms Blackstone Law Solicitors & Advocates, Ellison & Co, Strain Keville, Geoffrey Bryant & Co, Brinley Morris Rees & Jones, Redfern & Co, Beverly Davies Penny, Volks Hedleys, Kirk & Partners, Davies Ingram Harvey, Davies Phillips & Partners, Griffith Smith Conway, and Dakers. Stephen Katz and Paul Cooper of Begbies Traynor were appointed Joint Administrators, and said that Law Direct had begun to experience financial difficulties over the last two years after making numerous acquisitions. Specifically, the integration of the acquired businesses became increasingly difficult, resulting in the company being unable to property control the businesses and renew professional indemnity insurances across the various practices. Immediately following their appointment, the Joint Administrators completed the sale of certain aspects of the business and assets to north west London firm Alexander and Partners, securing three jobs and ensuring the seamless transfer of files. At this point, it is unclear whether any trading names will be retained or what will happen to the remaining staff.

• Circularity Scotland Limited, which was due to manage Scotland’s controversial deposit-return scheme (DRS), a bottle recycling scheme, has entered administration. On 7 June, the launch of Scotland’s DRS was delayed until at least October 2025 after the UK government declined a request for full exclusion from the Internal Market Act, which meant the scheme must exclude glass. Circular Economy Minister Lorna Slater blamed the firm’s demise on conditions imposed by the UK government, such as the exclusion of glass, while a UK government spokesman said delaying the Scottish scheme was entirely a decision made by the Scottish government. Blair Nimmo and Alistair McAlinden of Interpath Advisory were appointed Joint Administrators. Bank of Scotland PLC has a registered charge against the firm.

• Adastra Access Limited, a Walsall-based supplier of specialist access equipment to the construction industry, entered administration on 20 June. Blair Nimmo and Alistair McAlinden of Interpath Advisory were appointed Joint Administrators, and said that the company had faced “significant operational, health and safety and financial challenges, which resulted in trading losses and significant cashflow pressure”. 38 employees have been made redundant, while two have been retained to assist the administrators. Various HSBC Bank entities and Lombard North Central PLC have a registered charge against the company.

Insights

• Matthew Padian of Stevens & Bolton considers the merits of amending and extending the term of a loan facility vs. undertaking a full refinancing
• Rebecca Terrace of Squire Patton Boggs highlights helpful judicial guidance provided on the level of disclosure required in a CVA

• Eddie Bines of Kroll examines the benefits of corporate simplification, including potential reductions in cost and the elimination of surplus entities, and provides tips on when and how a corporate group should simplify its structure.

To stay current on all market news and insights, make sure you subscribe to Insolvency Insider’s free weekly newsletter.

Please note that guest content does not necessarily represent the views of the IPA.