Hamilton Burns creditors to lose out on £1.2m
Creditors will lose out on £1.2 million owed to them following the collapse of law firm Hamilton Burns WS.
Staff of the firm, of which ex-SNP MP Tasmina Ahmed-Sheikh was once a partner, are also unlikely to receive the £20,908 owed them in salary, holiday pay and pension contributions.
Formed in 2001, the firm collapsed in 2017.
Joint administrators said at the time: “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 stated in their latest report: “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.”
It also said the £1,272,905 of claims by 67 unsecured creditors were also unlikely to be paid.