Alvarez & Marsal, a leading specialist in corporate turnaround and restructuring, has started insolvency proceedings at one of its subsidiaries over a business dispute.
The world reknowned turnaround firm, which is managing the liquidation of Lehman Brothers, the biggest bankruptcy in history, has placed its subsidiary in Hong Kong into voluntary liquidation under accountancy firm KPMG.
The move is set to resolve a dispute over its acquisition of a corporate restructuring and insolvency practice in Hong Kong called On Target Advisory.
The turnaround firm said the unit was separate from the rest of A&M and would not impact the rest of the firm’s operations.
“This has been a two-year dispute with one individual, Nick Hill, who took very aggressive action over the business terms of a contractual agreement,” a spokesperson for A&M said in an e-mailed statement. “Filing for voluntary insolvency is a defensive measure on our part to end this dispute. This has no impact whatsoever on our ability to serve clients in Asia or anywhere else, and it has no impact on the rest of Alvarez & Marsal.”
Alvarez & Marsal was founded in1983 by Tony Alvarez II and Bryan Marsal. It has operations in North America, Europe, the Middle East, Asia and Latin America, “drawing on a proud operational heritage”, it said on its website. The firm has been expanding its turnaround and restructuring practice.
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