PROMINENT Newcastle lawyer Catherine Henry has made the "difficult, but necessary" decision to appoint voluntary administrators to her law firm, insisting the business is being restructured and not collapsing.
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The Newcastle Herald can reveal that Catherine Henry Lawyers appointed administrators Bradd Morelli and Hayden Asper from insolvency and business turnaround specialist firm Jirsch Sutherland on Monday.
Catherine Henry Lawyers will continue to operate as the administrators assist Ms Henry to restructure the business.
Voluntary administrators are appointed if a business is insolvent, or is likely to become insolvent in the future.
Ms Henry, a specialist medical and aged-care lawyer with more than 30 years experience, started the Newcastle-based firm in 2009.
"We expect minimal disruption to our clients and are looking forward to getting over this interim obstacle and moving forward," Ms Henry said on Tuesday.
"The decision to enter into voluntary administration was a difficult but necessary step, aimed at securing the future of our firm and ensuring the best possible outcome."
The administrators told the Herald that while investigations were ongoing, they expect all creditors would be paid in full.
Mr Asper, a senior manager at Jirsch Sutherland, said the law firm would continue to trade throughout the restructure.
He said the appointment was expected to be "very temporary".
"Catherine Henry, the law firm's director, made the decision to go into administration due to some temporary cash flow issues and we're working closely with her to restructure the business," he said.
Jirsch Sutherland managing partner Bradd Morelli said voluntary administration was a "great tool" to save businesses because the process moves quickly, enabling administrators to focus on the best solution for creditors.
"A voluntary administration takes the pressure off a company's directors and gives the business the best chance of survival," he said.
Prior to starting Catherine Henry Lawyers in 2009, Ms Henry ran the health litigation practice at Sydney firm Craddock Murray & Neumann where she was a partner.
When she relocated to her hometown in 2002, she started a Newcastle office of the firm, which she later merged with Hunter-based personal injury firm, King Street Lawyers, which she co-owned.
In 2009, she took over the practice and created Catherine Henry Lawyers.
Ms Henry is the daughter of former Newcastle councillor and prominent activist Margaret Henry, who died in 2015.
Previous winners of the Australian Lawyers Alliance (ALA) Civil Justice Award include Eddie Mabo, former prime minister Malcolm Fraser, Andrew Wilkie MP, and co-founder of the National Justice Project, George Newhouse.
The award recognises the dedication, commitment and perseverance of individuals and organisations to social justice and human rights in Australia.
Do you know more? donna.page@newcastleherald.com.au
