ADMINISTRATORS from KPMG have dropped a £50m claim from Manchester law firm Pannone.
The claim was made against the law firm for its role as adviser to insolvent property finance business Lexi Holdings.
Administrators had alleged that Pannone had allowed Shaid Luqman to continue to run Lexi while it was at risk of collapse. Lexi went into administration in 2006 with more than £100m of debts.
Pannone had strongly denied the claims. Pannone partner Simon Pedley said “common sense had prevailed”, reported the Manchester Evening News.
KPMG said it had agreed a settlement.
“This was a commercial decision, which will allow us to focus on the ongoing administration.”
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies