BusinessBusiness RecoveryInsolvency firm may go under

Insolvency firm may go under

Partners at insolvency firm Casson Beckman could themselves face bankruptcy proceedings this week.

Link: BDO launches insolvency prediction index

The liquidation specialists, once one of the top 20 insolvency firms in the country, closed its doors to work in September this year after struggling with debts and this week failed to agree a voluntary arrangement with its creditors.

Bankruptcy proceedings are likely to start this week unless an application to the High Court is made by the partners to delay the move.

The creditors meeting heard how the practice had run up debts of around £7m over the last few years during a troubled period that saw the license of equity partner David Nisbet not renewed. Salaried partner John Bennett, brought in as the licensed insolvency practitioner, had his license suspended by the Insolvency Practitioners Association this year.

Many of the live cases being handled by Casson Beckman & Partners have been transferred to three other firms although these transfers are understood to concern the main creditors, which include Barclays, the Inland Revenue, GE Capital and NatWest.

Kiran Mistry, partner at insolvency firm HKM and chairman of the creditors meeting held on Monday, said his report was due to be lodged with the High Court yesterday. The proceedings would then last for at least 28 days.

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