Rosenblatt:
Ian Rosenblatt has been given a chance to buy back his old law firm from listed company RBG Holdings (RBGH) in the latest twist in his public battle with its board.
RBGH revealed on Friday that, following a request from Mr Rosenblatt, it had entered into a two-week exclusivity period to explore a sale of the ‘Rosenblatt’ branded business, “together with certain assets”, to Rosenblatt Law Ltd (RLL).
RLL is a Solicitors Regulation Authority-licensed firm formerly known as AWH Acquisition Corp Corporate Ltd – which was owned by Abdul Hussain, the founder of Manchester-based law firm consolidator AWH Solicitors.
In ending Mr Rosenblatt’s consultancy agreement last week, RBGH accused him of acquiring AWH at some point before 10 September, but on Friday conceded that it “has now received documentary evidence that Mr Rosenblatt purchased RLL on 19 December 2024”.
The exclusivity period will run to 24 January “with a view to agreeing the disposal within this period”.
During this fortnight, the parties have agreed to “act in good faith and in an expedited manner to advance the disposal discussions”, not take any legal action of any nature against the other – Mr Rosenblatt claimed RBGH’s comments about him last week were defamatory – and withdraw any ongoing action that may be outstanding, including the disputed winding-up petition Mr Rosenblatt issued on 7 January.
They also agreed to withdraw the pending general meeting requisition notice, which Mr Rosenblatt had sought before Christmas in a bid to remove RBGH chief executive, Jon Divers.
If the deal goes ahead, it would leave RBGH as the owner of Memery Crystal, the non-contentious London practice it bought for £30m in 2021 to complement Rosenblatt’s litigation focus.
Earlier on Friday, RBGH had issued a stock exchange statement to counter Mr Rosenblatt’s claim that the business was insolvent.
It said: “Further to speculative comments which have appeared recently in the press, the board of RBG Holdings plc confirms that the company continues to trade and enjoy the support of its principal creditors, whilst it explores ongoing opportunities to strengthen its balance sheet.
“The company has been engaged in discussions with its lender and other parties in relation to its options. It appointed financial advisers in Q4 2024 to assist with these discussions which are now well advanced.
“Should an agreement be reached on the terms currently being negotiated, the board anticipates the Company will have sufficient cash headroom for the foreseeable future.
“In the event the company cannot reach an agreement with its principal creditors, it will need to explore alternative financing options immediately.”
The law firm listed in May 2018, raising £43m, with Mr Rosenblatt reported to have sold £8m worth of shares at the time.
He remains the company’s largest shareholder, with a 20.52% stake, but the shares closed on Friday at an all-time low of just 1.05p, giving it a value of just £1.35m.
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