Administrators handling the affairs of folded defendant firm Plexus have been unable to find anything more to pay back the millions the company owed. 

In a newly-published progress report for Plexus Law Limited, administrators said they had confirmed that £4.6m was owed to AIB Group (UK) plc through fixed and floating charges over the company assets.

AIB had exercised its contractual right to the small cash balance of £10,039 held by Plexus Law at the time of administration last July.

But other than a £185,000 payment made last year, there will be insufficient realisations in the administration estate to distribute to AIB. Administrators said the lender will suffer a ‘significant shortfall’ on its financial commitment.

Plexus Law was the limited company set up in 2018 as an alternative business structure and acted as the designated corporate member for Plexus Legal. It was part of the wider Plexus Group along with Legal and North, whose administrations are being handled separately but with some cross-over. The debt owed to AIB was classed as being from both Law and Legal.

The latest update states that Law and Legal are jointly liable for £3.23m owed in VAT to HM Revenue & Customs. Based on current estimates, there are insufficient funds in Plexus Law to pay any of this tax bill but there may be a dividend payable through Legal – although the value and timing of any payment is uncertain.

Unsecured creditors of Plexus Law were told last year they can expect to receive nothing from the wash-up of the company’s finances. There was no update on how much unsecured creditors are owed.

The Plexus business was sold for £1.1m to Axiom Ince, which has itself subsequently gone into administration after it was shut down by the SRA. Former Axiom Ince director Pragnesh Modhwadia has said that money from the firm’s client account – which is said to be missing around £64m – was used to fund the Plexus purchase, as well as acquire Ince & Co and to buy or renovate 13 properties.

Interpath, which is handling the Plexus Law administration, reported it has incurred time costs of £47,211, based on 101 hours at an average hourly rate of £470.

 

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