Global Counsel collapse leaves £4.6M deficit as administrators map wind-down

The collapse of Global Counsel has left a £4.6 million balance sheet deficit and little prospect of a going-concern rescue, according to newly filed administrators’ proposals that shed further light on the speed and finality of the firm’s February failure.

The update follows the appointment of William Wright and Stephen Absolom of Interpath on 20 February 2026, which came after a sudden wave of client terminations tied to renewed scrutiny of historic links between co-founder Peter Mandelson and Jeffrey Epstein. As previously reported, that loss of mandates triggered an immediate liquidity crisis and forced the consultancy to cease trading.

The administrators now confirm that, as at the date of appointment, the company’s affairs reflected a significant shortfall. While Global Counsel reported assets of more than £10.7 million, only about £2.7 million is expected to be realised, leaving an overall deficiency of approximately £4.6 million once liabilities are taken into account.

HM Revenue & Customs has emerged as the largest external creditor, with claims of roughly £645,000, ranking as a secondary preferential creditor alongside certain employee-related claims. Employees themselves are collectively owed about £2.6 million, largely in respect of wages, holiday pay and other entitlements.

The administrators’ report underscores how quickly the firm’s financial position deteriorated. Global Counsel had been profitable as recently as the year ended December 2024, generating pre-tax profit of approximately £0.6 million, but customer departures in early 2026 “severed ties” and sharply curtailed revenue generation capacity.

Against that backdrop, the directors concluded there was no viable path to continue trading in administration. All but 1 of the company’s employees were made redundant shortly after the appointment, and operations were wound down in an orderly fashion.

Efforts to salvage value through a sale process also failed to gain traction. Following publicity surrounding the administration, the joint administrators received expressions of interest from potential buyers and issued an information pack to five parties. However, all prospective bidders ultimately withdrew after further engagement, leaving a break-up realisation strategy as the only option.

Realisation efforts have focused on debtor collections, intragroup balances and the disposal of office assets. The company had an outstanding debtor ledger exceeding £2 million at appointment, with approximately £0.5 million recovered to date, and administrators continue to pursue further recoveries and investigate potential claims, although they are not currently aware of any connected party transactions in the two years prior to the administration than transactions in the ordinary course of business with other group entities.

The administrators also reviewed the group’s international footprint, which included subsidiaries in Asia, Belgium, the United States and the Middle East. Those entities operated largely as satellite offices reliant on the UK parent, and the collapse has triggered a coordinated unwind of intercompany balances and overseas operations.

From a distribution perspective, the outlook remains limited. The administrators expect preferential creditors, including employees, to be paid in full, with HMRC likely to receive a distribution depending on realisations. By contrast, recoveries for unsecured creditors are described as uncertain and contingent on asset recoveries and costs.

Looking ahead, the report signals that the most likely exit route is a creditors’ voluntary liquidation, with the administrators reserving the option to transition the company into liquidation once realisations are complete.

Read the administrators’ proposals here.

The administrators have been assisted by Gordon Brothers and Browne Jacobson.