A Difficult Truth: The 79th Group’s Latest Statement

On 10 April, The 79th Group issued a public statement in response to the ongoing investigation by the City of London Police, which can be found here.

But let’s be clear: this is not a roadmap to redemption. It’s a thinly veiled admission of financial distress — and a warning to investors that the company is no longer functioning as promised. Many of you have held onto hope. You’ve waited, watched, and trusted that eventually The 79th Group would make things right. But this statement changes everything.

It confirms what Insolvency & Law has suspected for some time: the company is insolvent in all but name, and now operating in survival mode. This is not a healthy business navigating a bump in the road — it is a company fighting for its very existence.

Let’s examine what they’ve said — and what it actually means for you.

Ceasing to Raise New Funds

“We have ceased taking any new funds…”

This is a crucial line. The company is no longer raising capital. That’s a major red flag.

Companies like The 79th Group often rely on a continual influx of new investor money to meet their existing obligations — interest payments, redemptions, operating costs. When that inflow stops, the financial structure collapses in on itself.

If you’re holding a loan note, this line alone should send alarm bells ringing. It confirms they no longer have access to new money — and therefore cannot meet their current commitments.

A business that can’t meet its obligations is not just struggling — it is legally insolvent.

A Moratorium on Payments

“We have asked for a moratorium on payments to Clients…”

Let’s translate that: They’ve stopped paying you. No more interest. No redemptions or timelines. And, certainly no clarity.

This is not a vague operational delay — it’s a formal admission that they will not be paying investors. In other words, redemptions and interest payments are suspended indefinitely. And critically: There is no timeline. No detailed explanation. No real accountability.

The statement claims this moratorium is to “develop a plan” with “strategic partners.” But:

• What is the plan?
• What stage is it at?
• Who are the strategic partners?
• How long will it take?

None of this is addressed. The language is vague, speculative, and offers no immediate hope for those who trusted the company with their savings.

This so-called moratorium is not a strategy — it’s a stalling tactic. But a moratorium doesn’t change the legal reality:

Under Section 123(1)(e) of the Insolvency Act 1986, a company is insolvent if it cannot meet its debts as they fall due. The 79th Group has not only admitted to defaulting on its loan note obligations — it has made that default a central part of its “plan.”

That is a serious escalation, and a clear indication that investor rights are being side-lined in favour of internal damage control.

Focus on Survival, Not Repayment

“These steps have been taken to ensure that the business survives…”

There it is. The word that says it all: survives. This isn’t about repayment. It’s not about fulfilling promises, or even about transparency. It’s about saving the shell of a business while loan note holders are left out in the cold.

Let’s be clear about what that language actually signals:

This is a clear sign of balance sheet insolvency — defined under Section 123(2) of the Insolvency Act 1986, where a company’s liabilities exceed its assets. The directors’ focus is no longer on repaying investors — it’s on reducing overheads, restructuring operations, and minimising losses. That’s another major red flag.

This is not a restructuring for future growth or a company preparing for recovery. This is a company in financial retreat, contracting to survive. It is how distressed businesses prepare for damage control. Not how viable businesses behave.

Let’s Be Brutally Honest

The 79th Group is no longer functioning as a viable investment provider.

Here’s what they’ve confirmed — explicitly or implicitly:

• They’ve stopped raising capital
• They’ve stopped making payments to investors
• They’ve begun cutting essential staff
• They’ve offered no clear plan for what happens next

This statement is not about transparency — it’s about buying time. It’s a strategy to delay, defer, and dampen panic among investors.

But here’s the hard truth: Time is exactly what you don’t have.

Every day that passes is a day closer to limitation deadlines, a day deeper into financial instability, and a day further from recovery — unless you act. The company’s behaviour — and its own words — now confirm what many feared:

This is a legal and financial crisis. Not a PR problem.

The Danger of Waiting for the Police Investigation

One of the most dangerous misconceptions we continue to see is the belief that waiting for the police investigation to conclude might lead to financial recovery. It won’t.

We reported on this here, and it’s worth repeating:

The police are investigating potential criminal wrongdoing — not acting on your behalf as an investor. Their role is not to recover your funds. Their goal is prosecution, not compensation.

Even if the investigation results in a successful conviction (which is not guaranteed), it could take years — and there is no legal obligation for the court to order financial restitution to investors. Under the Limitation Act 1980, most civil claims must be brought within six years of the cause of action.

That clock is ticking — and if you wait for the police, you may miss your window to take civil action and recover your losses. If you’re hoping the police will recover your money – think again. The police are not there to get your money back.

And if a criminal conviction eventually occurs, you may find that your civil rights have already expired, with no path left for personal recovery.

What Can You Do?

If you’re still holding onto hope that The 79th Group will sort itself out — we understand.

It’s painful to accept that the promises made to you may never be fulfilled. But clinging to that hope — in the face of overwhelming evidence — could cost you everything.

Civil Action = Financial Recovery

That’s where Insolvency & Law steps in.

Our focus is not criminal prosecution — it’s civil recovery, which means using the powers of the Insolvency Act 1986 and Civil Procedure Rules to:

• Investigate what happened
• Trace and recover company assets
• Hold directors accountable
• Return money to investors

We don’t need to prove criminal fraud. We only need to show, on the balance of probabilities, that you were misled.

And critically:

We don’t need to wait. We can act now.

At Insolvency & Law, we’re not waiting for The 79th Group to get its house in order. We’ve already:

• Issued a Pre-Warning Letter Before Action
• Begun examining every legal avenue — from civil misrepresentation and deceit, to insolvency and third-party action
• Started pursuing real, tangible recovery — for real investors

Because our job isn’t to hope. Our job is to act.

The Lenders Majority Group (LMG) – T&T Trustees

There’s been some confusion — so let’s clarify:

Our Loan Note Enforcement & Recovery Service operates entirely independently of the LMG process.

There is:

• No duplication
• No conflict
• Full freedom for investors to pursue both avenues simultaneously

Investors can participate in the LMG process and still engage Insolvency & Law for direct civil recovery.

Why is that important?

Because our focus remains solely on:

• Enforcing your legal rights
• Pursuing civil recovery and enforcement actions
• Using the Insolvency Act 1986 and civil law mechanisms to reclaim lost funds on behalf of individual investors

If you’re waiting to see how the LMG strategy plays out — that’s understandable. But you don’t have to put all your eggs in one basket. Civil action is your legal right. You don’t have to choose — you can take action now.

You Still Have a Voice. Use It.

We know this is overwhelming. We know many of you feel angry, confused, and betrayed. You invested in good faith, and believed the promises. You trusted that your money was safe. Now you’re facing silence, stonewalling, and a company that seems to have abandoned its obligations.

But this is not the time to disappear quietly. This is the time to take a stand. You still have legal rights. You still have options. And you still have a voice.

At Insolvency & Law, we’re here to help you use that voice — strategically and lawfully — to pursue real recovery through civil enforcement. Don’t wait for the police. Don’t wait for redemption. Most importantly, don’t wait until it’s too late.

Contact us today:

[email protected]

Time is short. Your legal rights are valuable. We’re ready when you are.