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Wednesday, December 10
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Unsecured creditors won’t get £23.3M owed from collapsed firm

News TeamBy 461 Comments2 Mins Read

Unsecured creditors won’t receive any of the £23.3 million they are owed by collapsed firm Pure Legal.

Administrators reported that once the north west firm’s lenders and staff have been repaid in full, there will be no cash left.

Pure owed around £1.85m to Novitas and £6.1m to Perspective Investment, but as secured creditors they will be paid in full following the firm going into administration last year, following complaints of missed payments.

National firm Hugh James says Pure handled thousands of claims relating to the mis-selling of mortgages, pensions and cavity wall insulation.

The firm is now asking Pure clients facing claims for costs to come forward.

“We have already secured repayment of all legal costs in our first case and believe we can help many others. We are conducting all cases on a “no win, no fee” basis,” a spokesman said.

Joint administrators from Kroll Advisory were appointed last November and have now sought to extend the administration to November 2023..

The Pure directors had estimated that WIP was worth around £30m, but the administrators say recoveries may be ‘significantly lower’ than this and are dependent on the outcome of negotiations with ATE insurers, litigation funders and the firms instructed to continue with ongoing cases. So far the administrators have recovered a total of £214,500 in relation to settled cases.

 

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