No offers to buy ‘Ping your Lawyer’ app which cost millions

An online legal services platform which cost ‘many millions’ to build has still received no formal offers from buyers, after being on the market for almost a year.

LawBite, the trading name and platform of Lawbit Ltd, an online service which promised to ‘democratise’ legal advice for small businesses, is having its business and assets sold by administrators after falling £5.8m into debt.

William Antony Batty and Hugh Jesseman, of Antony Batty & Company LLP, were appointed on 24 September last year and by 10 December the company’s creditors had approved plans for the joint administrators to continue to manage the company while they market its business and assets for sale.

But in a six monthly progress report published last Friday, Jesseman revealed that Axia Valuation Services, which was engaged to find a buyer, ‘continues to seek suitable offers’.

‘Several expressions of interest have been received by us or Axia, but so far, these have not progressed to the point of a formal offer,’ Jesseman said. ‘Whilst many millions has been spent by the company developing the platform, its value will depend on the commercial benefit which potential purchasers envisage.’

Axia has valued the company’s assets but the administrators have decided not to provide detail of the valuation ‘as this may influence bids from prospective purchasers’. The valuation will be fully disclosed following completion of a sale. 

The estimated financial statement for LawBit Ltd included 29 non-preferential unsecured creditors - excluding HMRC, which has claimed £552,769.14 - with an estimated total liability of £2,382,879. The administrators have since received five claims from unsecured creditors, totalling £1,043,422.43. But Jesseman emphasised it is ‘unlikely' they will receive anything. 

Jesseman revealed that a balance held by a third party has been identified in an account, ‘which would appear to be held in the company’s name’. 

‘The position is however disputed and the funds in question are being claimed by another party’, Jesseman wrote. ‘Our solicitors have undertaken a review of the matter and conduct initial correspondence at a contingent cost, to be reviewed in the event of successful recovery. Details of the amount in question will be provided once we are able to do so, as at present this information is sensitive in a legal context.’