PLL 1 Realisations Limited (Formerly known as Pure Legal Limited)

PLL 1 Realisations Limited (Formerly known as Pure Legal Limited), a Liverpool-based law firm with a second office in Prescot, which collectively employed over 100 staff members across its two sites, entered administration on 2 November 2021. Robert Armstrong, Michael Lennon and James Saunders of Kroll Advisory were appointed joint administrators of the company, as well as eight other members of the corporate group.

The company operated as an end-to-end claims management business offering in the civil litigation sector. As at the appointment date, the company was managing over 28,000 cases.

The company was placed in administration on application by Novitas Loans Limited (“Novitas“) and Close Invoice Finance Limited (“CIFL“) after it failed to repay loans from these parties.

Immediately on their appointment, the joint administrators secured a pre-pack sale of the company’s interest in its clients’ claims to four purchasers: SSB Group Ltd, Clear Law LLP, FD Law Limited (trading as Hayes Connor Solicitors) and Keller Lenkner UK Limited.

The transfer of client claims was subject to the consent of the relevant client and, in a number of cases, the consent of the relevant ATE insurer and litigation funder, with whom the joint administrators have been liaising to obtain such consent.

In accordance with the asset purchase agreements, no consideration was paid on completion of the transactions. In each case, the purchase price is payable on an entirely deferred basis and is calculated by reference to WIP realisations, any success fees and certain other deductions the company may be entitled to charge. As such, the deferred consideration is payable following the successful resolution of an individual claim.

In their proposals dated November 2021, the joint administrators reported that they expected to pay secured creditors in full and that there would even likely be a distribution to unsecured creditors.

However, since that time, they have reported that there would likely be insufficient realisations to pay anything to unsecured creditors (other than with respect to the prescribed part), but that this is dependent on the outcome of the litigation previously managed by the company and the recovery of WIP.

Perspective Investment Fund Vehicle Limited, another secured creditor, is expected to be paid in full, while it is not clear whether Novitas and CIFL will be repaid in full.

The joint administrators’ latest progress report can be found HERE.

They have been assisted by Leonard Curtis, DLA Piper and Field Fisher.