Revealed: Austin-Smith:Lord owed £12 million in fees
Austin-Smith:Lord (ASL) is owed around £12 million in unpaid fees according to company voluntary arrangement (CVA) documents sent out by the AJ100 practice
Almost all of the outstanding money - around £11 million - is due from one major client in the Middle East. According to the CVA proposals sent out to all creditors this week ahead of a meeting on 28 November, that total is made up of £8.5 million in invoiced work and £2.6 million in uninvoiced work.
The document also reveals how the practice had been forced to ‘dramatically and suddenly’ change its business model, resulting in a reduction of workforce from a one-time peak of 180 staff to just 65.
However ASL remains confident payment from the key debtor could be imminent and had not ruled out a ‘swift resolution’.
It is understood the British Foreign & Commonwealth Office (FCO) is also battling to help recover the monies owed.
ASL partner Jennifer Dixon (pictured) said: ‘[The British government] is working fantastically hard to assist and negotiate. It is moving heaven and earth to help.’
The CVA document confirms all staff in the practice’s Abu Dhabi office were given ‘notice of termination’ of employment on 27 October and a day later the London workforce was placed on redundancy notice.