SSB Group - Case Update

The joint administrators of failed Sheffield claims firm SSB Group have provided a bleak update on the likely outcome for the firm’s creditors, sharing that the sale of the firm’s work in progress brought in less than 1% of the total amount owed to creditors.

SSB Group was a giant in the no-win, no-fee space, employing over 220 staff and working on almost 43,000 live cases prior to its collapse. Anthony Collier and Kelly Burton of FRP Advisory were appointed joint administrators of the firm in January of this year after it experienced significant cashflow issues, due in part to challenges in its case portfolio and overhead costs that could not be supported by the firm’s case load.

WIP was transferred to a number of alternate firms, including Harcus Parker and Cheval Legal, for total consideration of £731,000, an amount which pales in comparison to the over £200 million owing to SSB Group’s creditors. The consideration was paid by Katch, one of the litigation funders which supported the firm and its biggest secured creditor. Katch was owed £63 million on appointment and is expected to suffer a significant shortfall on its debt.

Katch also provided funding during the administration period, since there were insufficient assets in the administration estate to meet the joint administrators’ remuneration in full, together with professional fees due to Pinsent Masons and Leonard Curtis Legal. There were approximately £120,000 in pre-administration fees and £822,000 in fees incurred during the reporting period.

Employees, owed approximately £237,000 in preferential claims, and HMRC, owed £129,000, are not expected to receive a return. Unsecured claims in the administration have so far totalled approximately £28 million, but the actual figure is much higher according to the firm’s books and records — a total of £142 million is owed to trade creditors, disbursement creditors, finance companies and other litigation funders excluding Katch, all of whom are likely to receive nothing.

The joint administrators’ progress report can be found HERE.