Manchester-based personal injury (PI) firm Delta Legal has pointed to the recent Jackson Reforms as the reason for the firm’s closure.
800 of the company’s ongoing files will be transferred by Recovery First to five other practices.
The company ceased taking new cases in March this year after it saw revenues drop following the civil justice reforms last year.
Delta Legal managing partner Daren Ismay, said: “It’s very disappointing that the Jackson Reforms have resulted in such a draconian reduction in revenues.
“Having recognised that the firm wasn’t going to be financially viable going forward, I decided to take immediate action. By seeking professional advice early, I’ve been able to manage the process, which will improve the situation for creditors and clients alike.”
Delta Legal has appointed Recovery First, specialists in helping PI law firms withdraw from the market, to oversee the managed and compliant run off of 800 personal injury (PI) files, which will allow the Manchester-based personal injury law firm to “achieve almost 100% of the value of its work in progress (WIP) over the next three years.”
Managing director at Recovery First, David Johnstone said: “Delta Legal acted early and approached us as soon as it recognised there was trouble ahead.
“At first, we directed the firm to other experts, including independent accountants and insolvency practitioners, who advised on a voluntary arrangement. It was after Delta Legal sought expert advice that it then came back to appoint us.
“The whole process will last for three years with Delta Legal likely to see 40% of recovery value within the first year, 30% in the second year, 20% in the third and the remaining 10% is likely to be sold on a discounted basis.”