Legal IT trailblazer Epoch faces liquidation

Epoch Software, the innovative and high-profile legal IT company behind the Desktop Lawyer service, faces possible liquidation this week at a creditors' meeting, the Gazette has learned.However, an unknown law firm has shown interest in buying the business.The company - which is continuing to trade - has suffered from the dot-com market crash and failed to receive badly needed second-round funding from its institutional investors.The meeting has been called under a creditors' voluntary liquidation, which results from the directors - including solicitor Richard Cohen - recognising the problems and their responsibilities under the Insolvency Act 1986.David Rubin, the licensed insolvency practitioner advising the company, said he was prepared for any eventuality: the institutions having a last-minute change of mind, a sale, liquidation or the company going into administration.Mr Rubin said Epoch has 'an excellent business', meeting all of its financial targets.

The nature of the sector and Epoch's planned growth made the company is loss-making at present, he added.'A lot of dot-coms are falling apart and are not worth saving,' said Mr Rubin.

'But there are companies like Epoch that have a good product and customer base, and will be profitable in the end with a following wind.' He said the investors are willing but not able to provide more money because they have lost so much in recent months.He continued: 'My gut feeling is that the institutional shareholders will not put more money in, but the business will be rescued by selling it to a management buy-out or a third party.'The management has been investigating a buy-out, while several other potential buyers have shown interest.

Mr Rubin confirmed that one of them is a law firm.Nobody at Epoch was available for comment.Neil Rose