An online law firm that went in administration, owing the Manx government £500,000, is to be wound up.

Lawbit was set up in the UK in May 2012 by barrister Clive Rich and his wife Joanna.

Its subscription service and online platform Lawbite offered affordable legal advice to small and medium-sized businesses.

The Department for Enterprise was one of those that provided funding in 2018, the company having set up an Isle of Man arm the year before.

Lawbit Isle of Man is in the process of being struck off and Lawbit in the UK was placed into administration in September this year.

Accounts show that it owes more than £5.8m to some 33 creditors including £500,000 to the DfE.

All staff were made redundant in May this year when the company was mothballed.

The directors had hoped to seek a pre-pack sale of the business and assets but before the administrators were appointed, HM Revenue and Customs issued a winding up petition.

Administrators Antony Batty and Co had hoped to sell the company as a going concern.

But no buyer could be found and the company is now to be wound up and its business and assets sold in order to make a distribution to one or more of the secured creditors.

However, the administrators say it is unlikely that any dividend will be paid to any unsecured creditors - and not certain even if it will be paid to preferential creditors, which include the Manx government.