The partners still have some concerns over the plans, causing the £57.9 million settlement to stall, reports London-based The Lawyer newspaper. The original date for opting into to the deal was 24 July; however, that deadline was pushed back to 7 August, and has now been set to next Monday (13 August).
Sticking point
According to the report, further delays are possible as the ex-partners are still waiting to receive the agreement documents. The deal’s key sticking point appears to be the ability of the estate to sue ex-partners under the unfinished business doctrine, which allows a bankruptcy trustee to claw back profits made from work carried out at a new firm if the business was generated at the bankrupt practice.
One former partner told the newspaper that the documents need to arrive in the ex-partners in-boxes today to make sure they will be returned by Monday, but recent e-mails suggest the bankruptcy chiefs are still fine tuning the deal.
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