HMRC files Winding-up Petition against Legal Giant

Metamorph Group Services, a legal company based in Telford, has been forced to close its doors by the Solicitors’ Regulation Authority (SRA) following an investigation. The company, which was the owner of several legal firms, has had a winding up petition lodged with the High Court of Justice in London by the commissioners for HM Revenue & Customs. The hearing is set to take place on January 18, 2023, at the High Court, Royal Courts of Justice in London.

Need a second opinion on your insolvency litigation? Our specialist solicitors & barristers can help by assessing your case prospects and whether a winding-up petition is the right tool. We have highly experienced dual-qualified lawyers, so if our view is your case has limited merit or high risk we can advise you of the best strategy in our first meeting.

Closure of Law Firms due to HMRC Winding-up

Since the return to normality after Covid-19 the number of winding-up petitions being heard in London has increased rapidly, particularly HMRC winding-up petitions which have increased rapidly in recent months.

The closures of the law firms under the Metamorph Group umbrella, which include Terry Jones Solicitors, Linder Myers Solicitors in Shrewsbury, Donnelly & Elliott Solicitors in Telford, and SLC Solicitors in Shrewsbury, is a result of a major regulatory probe into the legal profession in Shropshire. The closure of these firms has put hundreds of jobs at risk across the entire Metamorph Group.

The closure of these firms is a significant blow to the legal profession in Shropshire, as these firms were considered to be major players in the area. The regulatory probe has resulted in the shutdown of several legal practices, leaving clients without representation and employees without work.

Appointment of Intervention Agent

To assist with the closure of these firms, Gordons LLP of Bradford has been appointed by the SRA as its intervention agent. The firm has issued a statement on its website providing advice to clients of the collapsed law firms. The SRA is collecting all clients’ files and documents from the firms’ offices for safekeeping and will continue to do so in the coming weeks. Clients are being advised to provide Gordons LLP with their consent to have their files sent to a new lawyer, or to themselves by emailing [email protected]. Clients have also been provided with information on how to recover their wills and Power of Attorney.

Consequences of the Winding-up Petition

The closure of Metamorph Group Services and the law firms under its umbrella is a significant event in the legal profession in Shropshire. The regulatory probe that led to the closures has left clients without representation and employees without work. It’s important that clients of these firms act quickly to ensure that their legal matters are properly taken care of and their documents are safeguarded. The SRA and Gordons LLP have been working to assist clients during this difficult time and provide necessary information and guidance.

How Can We Help you Oppose a Winding Up Petition?

Our specialist winding-up petition lawyers are experts in defending winding-up petitions. We can advise you as to the specific merits and demerits of your case and can assist you in opposing winding up petitions and negotiating with creditors. If your company has been issued a winding-up petition or statutory demand, you may be able to challenge that petition on the following grounds:

That the debt alleged in the statutory demand or petition to be owing is genuinely disputed on substantial grounds by your company; Your company has a genuine right of set-off against the creditor that exceeds the amount claimed in the statutory demand; or In certain other limited circumstances (for example such as jurisdiction, technical or procedural error or delay).

To oppose a winding-up petition, you will initially need to file a witness statement in opposition with the Court within five business days before the date when the petition will be heard by the Court (rule 7.16 of the Insolvency (England and Wales) Rules 2016). A copy of that witness statement will need to be provided to the petitioning creditor at least five business days before the hearing.

Your company is entitled to appear at the petition hearing so as to oppose the making of a winding-up order. It is a routine matter for companies to instruct solicitors and/or barristers to appear on their behalf at the hearing.