In 2006 Primary Capital, a UK private equity firm, acquired (for £27 million) the UK company Credere Limited, the vehicle formed to acquire the Haines Watts Business Recovery & Insolvency (HWBRI) practice.
In 2008 the HWBRI practice entered into a pre-pack administration and was sold to Tenon Limited, as part of Tenon Plc, an AIM listed accountancy firm.
Now (7 October 2011) The Times of London reports that the accounting firm Ernst & Young is being sued for £8.5 million by Primary Capital, claiming that the accountants incorrectly valued its investment into HWBRI. Primary Capital claims it lost its investment when the insolvency firm (HWBRI) was sold to Tenon Limited.
Apparently Primary Capital has so far been unavailable for comment.
Hopefully there is plenty more news to come.
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SOURCES: 1. Accountancy Age http://www.accountancyage.com/aa/news/2115496/-sued-pe-firms-lost-insolvency-business-investment#ixzz1aRE1dbTB 2. Unquote http://www.unquote.com/unquote/news/1574751/uk-primary-capital-acquires-haines-watts-business-recovery-insolvency 3. Jones Day http://www.jonesday.com/experiencepractices/ExperienceDetail.aspx?experienceid=15002
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