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frequent Government changes have caused a perfect storm for PI firms.

This started with allowing CMCs and refferal fees. In reality 90% of referral fees actually went to insurance companies. Modest backend refferal fees soon accelerated to £800-£1,000 up front payments.

What option did firms have but to pay them by increasing their borrowing just to keep the show on the road.

Of course the banks were happy to lend based upon our huge WIP banks.

Firms quickly became over geared and WIP assessments increased to secure the debt. Be honest how much of that WIP is really recoverable and when did you last have a dead filing purge!

At some point the music stops and the banks will be looking to recover against these WIP mountains.

I predict a huge amount of pre backs with creditors taking huge haircuts. Parabis is the beginning not the end.

I suggest the SRA keep out of this and allow administrators to do their jobs as their are not equipped both physically or intellectually to deal with this.

Slater and Gordon will be the legal sectors Leman Brothers and we will all feel the cold winds blow if they fail.