Delta Legal, which ceased to take on new cases in March, has appointed PI-Solutions to help it wind down and run off some 800 personal injury cases that it has on its books.
The firm which has become one of the most recent to shut its doors in the wake of the Jackson reforms, is expected to achieve almost 100% of the value of its work in progress (WIP) over the next three years.
PI-Solutions was approached by Delta Legal in January when it became apparent to managing partner Daren Ismay that the firm was facing solvency issues.
“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," said Ismay.
Managing director at PI-Solutions, David Johnstone, said that Ismay's early approach had helped its situation.
PI-Solutions has secured five panel firms willing to take on Delta's WIP and will undertake the transfer process. It will also monitor the liquidated value flowing to Delta Legal on case conclusion, while Delta Legal will supervise and manage its orderly wind down.
“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,” he said.