Mon, 23 Nov 2015 | ADMINISTRATION
Legal and professional services provider Parabis Group is to be sold in a pre-pack administration, it has been revealed.
Sky News reported over the weekend that an insider had said the London-based company is to be placed into administration and then its main operating units are to be sold immediately. The source claimed that the sale would raise just over £50 million, which is less than Parabis’ current debt of £70 million.
The move will also reportedly save "all but a handful" of the 2,000 jobs at the company, which is owned by Duke Street Capital.
Parabis' biggest division, Plexis Law, which specialises in personal injury claims, will be acquired by a new entity established by its founder Andrew McDougall. Meanwhile, the company's rehabilitation and medical legal business is going to be sold to Premex, with buyers also lined up for various other smaller units.
According to the source, City advisory firm AlixPartners is handling the pre-pack administration.
Parabis was one of the first firms to have capitalised on the dubbed 'Tesco Law' reforms, which saw a liberalisation of the legal services market. It became the first private equity-backed law firm to be given approval to operate under an Alternative Business Structure.
Accounts filed at Companies House show that Parabis has been struggling with its finances for some time; it has been forced to defer debt payments and had also breached banking covenants.
Neither Parabis or Duke Street have commented on the reports.
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