CREDITORS of failed firm McClure Naismith have been warned that they are unlikely to receive any money when the firm is eventually dissolved.
In his progress report for the six months to the end of February joint administrator Tom MacLennan, a partner at FRP Advisory, said that while he and fellow administrator Iain Fraser had managed to recover £855,000 since being appointed in August 2015 the cost of doing so was £790,000.
As the initial 12-month period of administration, which was extended by 12 months last August, is expected to hit three years in total, Mr MacLennan said there was unlikely to be any money left to distribute at the end of the period.
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“As a result of the additional time and increased legal costs incurred dealing with the fragmentation of the [partnership] and the transfer of clients and client files to firms not party to sale agreements, together with lower than anticipated realisations from debtors and work in progress, it is unlikely that there will be a distribution to any class of creditor,” he said.
So far the administrators have recovered just over £720,000 of the money owed to the firm by clients and just £114,000 for legal work that McClure Naismith had already carried out but had not billed clients for.
The firm, which at the time of going into administration was led by chairman Robin Shannan, appointed Mr MacLennan and Mr Fraser after suffering several years of spiralling costs and stagnating revenues.
While around 80 of its partners and staff found homes at firms including Burness Paull, Harper Macleod, Maclay Murray & Spens, and Wright Johnston & Mackenzie, 40 were ultimately made redundant.