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Firms in difficulty weigh their options
The economic crisis has claimed its first significant victims in the legal sector, with a 10-partner London firm among the recent casualties.
Saunders Solicitors was wound up in October by administrators BDO Stoy Hayward, which drafted in a team of restructuring lawyers from DLA Piper.
Meanwhile, Tunbridge Wells-based Buss Murton has been saved from administration by entering into a company voluntary arrangement (CVA) with its creditors - writing off around pound 1m of debt in the process.
It is a sign that larger and larger firms are now being overwhelmed by the credit crunch, whereas insolvencies had previously been limited to the high street.
DLA Piper global head of restructuring Stephen Halladay said: "We've got a number under review and we'd anticipate that there'll be considerably more law firm insolvencies during the course of 2008." Saunders was put into administration in October after being unable to meet a large lease commitment. It is also understood that a large bill...