Hamilton Burns creditors to lose £1.2m
Creditors are on track to lose £1.2 million following the collapse of Glasgow-based legal firm Hamilton Burns.
Former staff at the firm are also unlikely to obtain any of the £20,908 owed in salary, pension contributions and holiday pay due to the firm’s collapse.
Tom MacLennan and Iain Fraser of FRP Advisory were appointed joint administrators in 2017 after the firm fell into substantial debt.
The law firm, which specialised in immigration, criminal and civil practice law, had offices in Glasgow and was formed in 2001.
At the time, the firm said: “Hamilton Burns WS Limited had been severely affected by a marked reduction in legal aid income and a significant decline in general practice fee income. The firm also had very high levels of historic debt which, together with the fall in income, led to unsustainable pressures on cash flow.”
The administrators latest report said: “Claims of £20,908.09 have been received from 10 employees for employees’ arrears of pay, unpaid pension contributions and holiday pay. It is anticipated that there will be insufficient funds realised to enable a distribution of funds to preferential creditors.”
Similar wording was used to explain why the £1,272,905 of claims by 67 unsecured creditors would most likely not be paid, The Daily Record reports.