33 Legal Limited - Case Update

The Joint Administrators of a law firm have agreed to sell the firm’s intercompany receivables to a connected party at a significant discount.

33 Legal Limited, a Manchester-based claims management company specialising in personal injury, entered administration in July 2022 after a winding up petition by HMRC.

Following their appointment as Joint Administrators, Mike Dillon and Hilary Pascoe of Leonard Curtis learned that over £2.3 million was owing to the firm by connected parties. Debt collection specialists Cerberus Receivables Management were instructed to assist with recoveries.

Now, the Joint Administrators have reported that a settlement agreement has been reached between Exclusive Property Services, one of the connected parties, to purchase the debt for £250,000. CRM recommended acceptance of the settlement since £250,000 is more than what could be expected to be collected in enforcement proceedings.

Exclusive Property Services has agreed to pay £3,205 into the estate per week for 78 weeks, with the expectation that the settlement will be paid in full by September 2024.

The Joint Administrators have been assisted by Hill Dickinson. Their latest progress report can be found HERE.