Administration and The 79th Group: What It Means for Loan Note Holders

As The 79th Group enters administration, many loan note holders are left uncertain about what this means for their investment. What happens to the money? Who gets paid first? And how does the process actually work?

This article breaks down the administration process under UK insolvency law and explains why loan note holders are now relying heavily on the appointed administrators at Kroll Advisory, Grant Thornton and Quantuma. These firms now control what happens next, including whether investors recover anything at all and how much may be lost to professional fees.

1. What Is Administration?

Administration is a formal insolvency procedure governed by the Insolvency Act 1986 and the Insolvency Rules 2016. It is used when a company can no longer pay its debts and needs to be managed in a way that protects creditors.

When a company enters administration, control shifts from directors to licensed insolvency practitioners. These professionals, known as administrators, are responsible for taking over day-to-day decisions. Their role is to either:

• Rescue the business
• Or sell the company’s assets to repay creditors

However, the process is not free. Before any money can be returned to investors or creditors, the professionals running the administration must be paid. That includes:

• The insolvency practitioners themselves, such as those from Kroll, Grant Thornton and Quantuma
• Legal advisers, including Crowell and Moring
• Other third-party professionals, such as valuers, forensic accountants, and investigators

All of these parties are paid first. The more they charge, the less remains for loan note holders.

2. Who Are the Key Players?

Several professional firms are now in charge of the administration process across the various 79th Group companies. These appointed administrators are responsible for realising assets, managing creditor claims, and overseeing the legal and financial strategy moving forward.

The appointed administrators include:

• Andrew Stoneman and Robert Goodhew of Kroll Advisory
• Jeremy Woodside of Quantuma

(All appointed over 79th Luxury Living Five Ltd (LL5) and 79th Commercial Three Ltd (CM3))

• Gareth Latimer and Stephen Cave of Grant Thornton
  (Appointed over 79th Luxury Living Six Ltd (LL6))

In addition, Crowell & Moring Solicitors have been retained to act for Kroll in relation to LL5 and CM3, providing legal support on matters relating to those appointments.

Loan note holders are now entirely dependent on these professionals to manage the administration efficiently, recover value, and keep costs proportionate. The outcome for creditors will largely depend on how these administrators perform and whether they act transparently and in the best interests of creditors.

3. Challenges to Recovery: The “Low-Hanging Fruit” Problem

In practice, administrators focus first on assets that are easy to recover. These might include cash, property, or accounts that can be sold without dispute. These are known as low-hanging fruit.

Litigation is another potential route to recovery, but it comes with significant risk. Legal action is only worthwhile if:

• The administrators can identify a party worth pursuing
• There is strong evidence that assets are available
• The cost of litigation does not outweigh the potential gain

If the target of a claim is already insolvent or does not hold valuable assets, the litigation may end up costing more than it recovers. In that case, loan note holders may be left worse off.

4. Can Loan Note Holders Trust Kroll, Grant Thornton and Quantuma to Deliver?

As administrators of the 79th Group companies, Kroll, Grant Thornton and Quantuma now play a critical role in determining whether loan note holders recover any funds. While these firms promote global insolvency expertise, loan note holders should ask important and reasonable questions:

• How many administrations have Andrew Stoneman, Robert Goodhew, Gareth Latimer, Stephen Cave and Jeremy  Woodside handled where a dividend was paid to creditors?
• What are their standard charge-out rates?
• Have any of these insolvency practitioners been subject to disciplinary action?
• Have Andrew Stoneman or Robert Goodhew of Kroll, Gareth Latimer or Stephen Cave of Grant Thornton, or Jeremy Woodside of Quantuma and Paul Muscutt of Crowell & Moring ever worked together successfully in the past?

Transparency around fees, ongoing communication, and realistic expectations around recovery are all essential. Loan note holders, or their professional advisers, are right to raise these questions.

Grant Thornton’s Track Record and Administrator Misconduct

There are reasons for loan note holders to be particularly concerned about the track record of Grant Thornton UK LLP, the firm appointed to administer 79th Luxury Living Six Ltd (LL6).

Grant Thornton has faced multiple sanctions by the Financial Reporting Council (FRC) for audit failures, ethical lapses, and breaches of independence rules. These regulatory actions have resulted in financial penalties and enforced changes to internal practices.

More troubling is the disciplinary record of Gareth Latimer, one of the administrators of LL6. In 2024, Latimer was fined and issued a Disciplinary Consent Order following an investigation by the Insolvency Service. He was found to have breached the Insolvency Code of Ethics in 11 separate liquidations.

Specifically, Latimer failed to properly segregate client funds, mixing estate money, client funds, and company assets. This serious violation of Statement of Insolvency Practice 11 is a red flag for any creditor relying on proper handling of creditors funds during administration.

These concerns raise further questions about transparency, trust, and financial safeguards. They reinforce the need for independent scrutiny, such as creditor committees or third-party advocacy, to ensure loan note holders are not exposed to additional risks.

5. Data Protection Concerns: What If You’ve Been Affected?

In addition to financial uncertainty, some loan note holders have expressed concern about possible breaches of UK data protection laws.

Insolvency & Law has received multiple reports that loan note holders were contacted without their consent by anonymous third parties, including a group known as “Bond Review” or “Safe or Scam.” This unregulated overseas entity appears to be promoting legal services using personal and investment data, including names, email addresses, and financial involvement in 79th Group schemes.

Their blog content also references collaboration with a UK-based law firm, raising serious legal and ethical concerns. If a regulated solicitor is knowingly receiving leads from this kind of operation, they may be in breach of:

• The UK General Data Protection Regulation (UK GDPR)
• The Solicitors Regulation Authority (SRA) Code of Conduct, particularly regarding improper solicitation and data confidentiality

If you have received such communications, you should ask:

• How was my personal data obtained?
• Who is contacting me, and are they regulated in the UK?
• Do they represent my interests, or are they using my distress for commercial gain?

If your data has been misused, you have the right to file a formal complaint with the Information Commissioner’s Office (ICO).

Stay Proactive and Stay Empowered

The administration process for the 79th Group companies is now underway. But this is not a process designed to serve the interests of loan note holders first.

Investors are now entirely reliant on Kroll Advisory, Grant Thornton and Quantuma to act in a professional, efficient, and transparent manner. Every pound spent on administrator fees, legal advice, or valuation work is a pound that may not be returned to creditors.

Insolvency & Law continues to monitor the progress of these administrations, the conduct of appointed professionals, and the potential for dividend payments. However, the most important lesson for creditors is simple: act early.

Creditors who organise and engage proactively often secure better outcomes than those who wait. If you have concerns about the handling of your investment or believe the process is not protecting your interests, independent action may be necessary.

Insolvency & Law is currently assisting loan note holders affected by the collapse of The 79th Group. Their team focuses on helping creditors take practical and strategic steps outside the standard administration process, which in many cases results in limited or no recovery.

Key Actions by Insolvency & Law for Loan Note Holders

Insolvency & Law is taking proactive steps to help loan note holders recover funds and hold responsible parties to account. Our approach goes beyond the standard administration process, which often delivers limited returns for creditors.

Here are the core actions we are undertaking:

1. Initiating Legal Proceedings

We have supported loan note holders by filing winding-up petitions against 79th Luxury Living Six Ltd and 79th Commercial Three Ltd. These actions led directly to the appointment of administrators and triggered formal insolvency proceedings.

2. Pursuing Third-Party Recoveries

Because the administration process may not yield significant returns, we are pursuing legal action against third parties such as regulated advisers, introducers, and promoters who may have breached their duties to investors. Many of these parties carry professional indemnity (PI) insurance, which could offer a route to meaningful compensation.

3. Assisting with Claims

We are helping loan note holders to:

• Prepare and submit creditor claims
• Review their loan note agreements
• Understand their rights within the insolvency framework

By combining legal action and creditor support, Insolvency & Law aims to maximise potential recoveries for investors and offer a stronger alternative to passive participation in administration.

What Happens Next in the Administration Process?

Now that several 79th Group companies are in administration, the administrators must issue two critical documents within eight weeks:

• Statement of Affairs
  A snapshot of the company’s financial position, including its assets, liabilities, and creditor claims.
• Administrator’s Proposals
  A detailed explanation of the administrators’ intentions, including whether assets will be sold, how funds may be distributed, and what outcome they anticipate for creditors.

These documents will help determine whether there is any realistic prospect of recovery for loan note holders.

How Long Will the Process Take?

Administrations are usually set for an initial period of 12 months. However, administrators often apply for extensions, particularly in complex cases like this.

Each extension increases professional fees, including charges from administrators, solicitors, and valuation agents. These fees are paid out of the company’s assets, which reduces the remaining value available to creditors.

The Risk to Loan Note Holders

In many cases, insolvency plays out as follows:

• The company’s assets are sold
• Professional fees consume the majority of proceeds
• Little or nothing is left for unsecured creditors, even those with security

This outcome remains a serious risk for loan note holders in the 79th Group. Whether there will be any return will become clearer only after the Statement of Affairs and Administrator’s Proposals are published.

Contact Insolvency & Law Today

Insolvency & Law can help you take practical steps to protect your position and pursue recovery. We can assist you to:

• Understand your rights
• Prepare and submit your creditor claim
• Review your loan note documentation
• Explore legal action against regulated parties

Start the recovery process today.

Email: investigations@insolvencyandlaw.co.uk
Phone: 020 7504 1300
Web: www.insolvencyandlaw.co.uk