In ‘What went wrong at KWM’ it is stated that unsecured creditors of collapsed law firms have been recovering less than 2p in the pound on average. This is not invariably the case.
The firm in which I was a partner, Dawsons LLP of Lincoln’s Inn, regretfully went into liquidation in June 2011, but by 2015 paid out a dividend of 93.2p in the pound to all unsecured creditors.
The impression given in the legal press is that more often than not, partners of a sinking firm depart at the first sign of trouble and leave creditors high and dry. Not so.
Martin Codd, partner, Pennington Manches, London EC2