Lenders force SGH to restructure, page-218

I understand what you are getting act - better to keep the files running at the same firm and solicitors than break it all up and send it elsewhere.

However, if SGH went into external administration I'm fairly sure the insurers would take steps to move their files elsewhere in order that they are progressed than the uncertainty of delays if SGH ceased to trade at a later date. Moving them at the start of ex-ad is easier for dealing with customers (i.e. you can blame the ex-ad for the hassles) than potentially doing it later down the track.

Also need to consider the insurance impact for an IP if they step into such a practice (potential malpractice and PI risks would be significant and the resulting insurance cover costs to keep the business running might be prohibitive) as well as the need to find and rely on a solicitor to manage the operations of a law firm (as others have pointed out SGH needs to have a qualified solicitor on the board of directors to operate).

In any case - I've said I don't believe ex-ad is the best option for a professional services firm as the business value is inextricably linked to the staff, not physical assets.