Quanta Law - Case Update

The joint administrators of collapsed claims firm Quanta Law have provided a bleak update on the likely outcome for the firm’s creditors.

We last wrote about Quanta Law in August, when we described how the company entered administration after one of its main lenders entered administration and it received an opinion from counsel that its mortgage selling cases were likely to fail. The firm also began to receive adverse decisions on its overcharge cases.

At that time, joint administrators Paul Stanley and Dean Watson of Begbies Traynor advised that they had identified a potential claim against connected party Ryans Solicitors Limited related to the transfer of the firm’s interest in monies due from certain cases. It appears that nearly 5,000 cases worth £22.1m in damages with an estimated recovery through costs and success fees of £7.8m were transferred.

Now, the joint administrators have provided a brief and somewhat discouraging update to the company’s secured creditors who are collectively owed £31.6m, including lenders Duologi and Affiniti Finance, owed £16.7m and £5.7m, respectively.

Although they do not directly address the potential claim against Ryans Solicitors, the joint administrators state that they have liaised with the firm’s former management team and met with solicitors regarding various investigation queries. However, any financial benefit from this work is currently unclear.

Regarding the realisation of assets, the joint administrators advise that they have liaised with the company’s banking provider in relation to credits in the client account and the company’s debt collection service providers. Unfortunately, however, this has not impacted the expected returns to creditors, as the only creditor group anticipated to receive a dividend are the firm’s preferential creditors.

The joint administrators’ progress report can be found HERE.