Pre-pack administration sees Parabis Group entities sold off
A number of entities within the Parabis Group – including its legal services operations – have been sold off as part of a 'pre-pack' administration.
The group’s defendant insurance legal services business, which acts for a number of local authorities, has been acquired by management through Plexus Law Ltd.
Peter Saville, one of the administrators from Alix Partners, said: “The Group has been in discussions with its lenders and private equity backer for a prolonged period with a view to restructuring what is a complex business operating in an increasingly challenging legislative environment.
“Despite the receipt of further support from its financial stakeholders, the Group was unable to resolve its cash flow issues and sought to market itself for sale. As a result of that marketing process it became apparent that in the current environment a sale of the group as a whole was not a viable option and the liabilities attached to Group entities also precluded a solvent sale.”
The private equity provider behind the group was Duke Street Capital, which invested in the businesses in 2012.
Saville said more than 2,000 jobs in 20-plus different locations in the UK would be preserved as a result of the pre-packaged administration.
The break-up will see Plexus Law Ltd take on three service lines: the defendant legal services arm (which previously traded as Plexus Law & Greenwoods); the consumer law part of its claimant practice (Cogent); and its claims management business (Parabis Claims Solutions).
Plexus Law Ltd will have 90 partners and 353 lawyers, and 1,104 staff in total following the deal.
Its management will be led by Andrew McDougall as chief executive officer. Other appointments see Tim Roberts take up the role of Commercial Director, law firm partner Hilary Yeo become Operations Director and Nick Addyman head up the Consumer Law Division.
Other legal services-related disposals in the pre-pack see Lyons Davidson acquire the group’s Saga Law/Insurance business and part of Cogent Law. Carpenters Law also acquires part of the Cogent Law business.
The Parabis Group’s rehabilitation and medical legal reporting arm (Argent Rehabilitation) has been picked up by Premex Services.
A number of ‘field services’ businesses in areas such as health and safety have also been sold off.