Midlands firm Challinors owes more than £11.2m to unsecured creditors as it prepares to go into administration.
The firm carried out 32 registrations in June at Land Registry, making them in the top 15% of firms in the Land Registry table.
They have confirmed that they have filed notice of their intention to appoint administrators.
The Law Society Gazette reported that they have seen a draft statement of affairs that reveals the firm owes more than £4m to Allied Irish Bank and almost £500,000 to HM Revenue & Customs.
They report that as many as 250 companies and individuals, including several other law firms, are owed money by Challinors.
Wayne Harrison, director of insolvency for KSA, confirmed to the Gazette that he is acting on behalf of Challinors, but the firm has yet to enter administration.
The Solicitors Regulation Authority has confirmed that it has no concerns at this stage over clients’ interests so there is no need for regulatory action.