Full details of the pre-packed administration of Parabis Group have been revealed with the business parcelled out to firms including Carpenters Law and Lyons Davidson.
The founders of defendant insurance business Plexus Law have completed their acquisition of the business, with Plexus and 2013 merger partner Greenwoods, the consumer business of Cogent Law, and claims management company Parabis Claims Solutions all acquired by the new vehicle.
Plexus Law Limited will be led by former senior partner Andrew McDougall as chief executive officer. Parabis Group commercial director Tim Roberts will take on the same role at Plexus, partner Hilary Yeo will be operations director and Nick Addyman will head up the consumer law division. Other practice heads will continue in their roles in the new business.
London firm Lyons Davidson has acquired the claimant law business of Cogent Law as well as Parabis’s ‘Saga Law’ service line.
Insurance firm Carpenters Law has also acquired a portion of Cogent’s claimant business.
Parabis’s other service lines, including property and liability adjusters, have also been sold in the pre-pack administration process. News of the £50m administration was broken by Sky News at the weekend.
Before Plexus’s sell-off Parabis had been in talks with Bolton based Keoghs. However the deal fell through when Plexus opted for the founding partners’ offer instead.
Plexus was the first firm to receive backing from a private equity investor after receiving its ABS licence in 2012. The firm was backed by Duke Street, which later injected a further £13m into the firm. Recently it emerged that Duke Street had written down its €30m (£21.4m) investment in the business to zero.
Business advisory firm AlixPartners advised Parabis on the restructure and administration. In a statement joint administrator Peter Saville said Parabis had been in discussions with its lender and Duke Street for “a prolonged period”.
“Despite the receipt of further support from its financial stakeholders, the group was unable to resolve its cash flow issues and sought to market itself for sale,” Saville said. “As a result of that marketing process it became apparent that in the current environment a sale of the group as a whole was not a viable option and the liabilities attached to group entities also precluded a solvent sale.
“A series of business and asset sales was therefore agreed with the transactions completed by way of a pre-packaged administration preserving over 2,000 jobs in more than 20 separate office locations across the UK.”
Saville and fellow AlixPartners partners Ben Browne and Anne O’Keefe were appointed as joint administrators today (23 November).