The Ince Group - Case Update

The joint administrators of formerly-listed law firm The Ince Group are looking for ways to collect the £1m still owing on the pre-pack sale of the firm to Axiom DWFM earlier this year.

The firm entered administration in April, after it failed to publish its financial results and became unable to secure the required funding to service its obligations. Andrew Hosking and Sean Bucknall of Quantuma were appointed joint administrators, and sold the business and assets to Axiom DWFM (now Axion Ince) in a pre-pack deal for £2.2m. Axion paid £1m upfront and was supposed to pay the remaining £1.2m in instalments, but only paid £200,000 of this amount. This left £1m still owing when Axiom itself entered administration in October after also acquiring Plexus Law out of administration. Axiom has recently made headlines over an alleged £66m in missing client money and the arrest of seven individuals involved in its collapse.

Given the low likelihood that the deferred consideration will be received from Axiom, the administrators are considering pursuing a personal guarantee for the sale consideration provided by a senior member of the management team of Axiom. The joint administrators have remained tight-lipped on the details of the guarantee to avoid prejudicing any future actions. They also mentioned that other matters still merit further investigation.

The joint administrators’ most recent progress report can be found HERE. They have been assisted by Pinsent Masons.