Slater & Gordon in debt restructuring

The UK operations of law firm Slater & Gordon are in debt restructuring talks.

A report in the Daily Telegraph newspaper said the firm’s investors hired FTI Consulting for its UK operations. Media reports in Australia had previously said debt restructuring company McGrath Nicol had been appointed by its senior lenders as an independent advisor.

The Melbourne-based company has been under financial pressure since purchasing the legal arm of outsource solution provider Quindell for an estimated £640 million in the summer of 2015.

Investigations are being pursued into Quindell’s accounting practices, and a further investigation into Slater & Gordon’s accounts has also been announced.

Shares in Slater & Gordon fell sharply in 2015, from A$7.85 in April 2015 to A$0.91 by the last trading day before Christmas.