The solicitor had previously acted for Clays Lane over a libel case but the bill was disputed.The petition in the companies court was headed off by the corporation which paid the bill.
Clays Lane has now reimbursed the amount.
A consequence of the case was that Clays Lane's bank was forced to freeze its accounts pending the hearing – meaning other creditors went unpaid.
The corporation said money is now flowing again though it must still authorise payments.
It is currently negotiating with the co-op on an order to hand over all assets to the Peabody Trust.
The deadline for the transfer was extended to this week, but the corporation said it expected Clays Lane to comply.
A corporation spokesperson said: "We gave Clays Lane a further opportunity to make representations, and have subsequently confirmed our decision to transfer the land to the Peabody Trust.
"In view of the extra time this involved, we have extended the deadline for the deed of transfer to be signed to noon on 8 May.
"The corporation has followed a series of procedures following on from the statutory inquiry and now expect CLHCL to comply by Wednesday's deadline."
Source
Housing Today
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