Affinity Solicitors Limited, more widely known as Adams Moore Law, operated from six locations offering family law services primarily through legal aid funded work. The company encountered cash flow difficulties and entered administration in November 2013.
The principle assets comprised work-in-progress generated on Legal Aid Agency (LAA) assignments. The opening balance of funds at point of liquidation owed to the LAA was c. £2.5 million.
In December 2014, Dean Nelson and Nick Lee of Smith Cooper were appointed joint liquidators of the company and, together with independent consultant Jasvir Chopra, formulated a strategy to audit and manage the historic reconciliation and takeover of the company’s client account.
Since December 2014 approximately 900 client files have been reconciled, with c. £3.8 million being recovered to date, enabling payment in full of the funds owed to the LAA, with a surplus balance of c. £1.3 million being achieved so far.View the full case study