07 Jan 2016

Parabis: unsecured creditors set to lose millions

New documents have revealed that the collapsed Parabis group went into administration owing almost £50m to more than 2,500 unsecured creditors.

A statement of administrator’s proposals shows the firm owed unsecured creditors £31.5m when it went into administration last November and owed a further £16.1m. The statement also reveals that unsecured creditors, which include law firms, barristers’ chambers and medical experts, will be repaid less than 2p in the pound. Secured creditors, who are owed £73.4m from the group in total, are likely to receive £32.5m in return.

Failure to integrate

The 142-page document sheds light on the collapse of one of the first alternative business structures to seek out private equity investment. At its peak, the Parabis group employed more than 1,900 people in 31 locations across the UK. But it was badly affected by reforms of the claims market and the failure to integrate new businesses that had been brought into the group. Source: The Law Society Gazette

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