Professional advisers including law firms and data management companies stand to earn more than £1 million from the collapse of King & Wood Mallesons's European arm.
According to a report by joint administrators Quantuma, 13 professional advisers, were retained to help with the restructuring. It estimates the combined costs to be £1.23m while Quantuma said costs for its own services would be £116,000.
The advisers included solicitors’ firms CMS Cameron McKenna, Ashfords and Pinsent Masons as well as pension specialists and a confidential documents disposal company. According to the report: 'the choice of professionals was based on their experience and ability to perform this type of work.'
The administrators also said they had incurred around £6,000 in disbursments since their appointment, including £1,103 for taxi rides and £1,807 for IT equipment.
The report also shows that the firm was left owing £36 million to creditors following its collapse into administration. Unsecured creditors stand to recover nothing.
According to report, 74 creditors have put forward claims so far. Included in the unsecured creditors are Barclays, which is due £13.3m and HM Revenue and Customs, which is due £985,000. Barclays is listed as having both secured and unsecured debt.
According to Quantuma, the collapsed firm has around £8m available for preferential creditors and £247,000 to plug its pension shortfall.
On unsecured creditors it says 'It is currently unlikely that a distribution will be paid … due to the estimated claim from preferential creditors'.
The shortfall to unsecured creditors is estimated to be just over £7m.
The European arm of the firm fell into administration in January. Quantuma’s Andy Hosking and Sean Bucknall were appointed joint administrators and the firm was renamed QSP Residual Recoveries LLP.
The report also claims that the administrators had accepted an offer for the sale of firm’s London offices, near Cannon Street, by a company called Clear-It Limited. Quantuma said it vacated KWM’s offices on 22 February.