The 79th Group Update-What You Need To Know

Administrations, Court Cases, and What Loan Note Holders Must Know Now

The financial collapse of companies within The 79th Group is rapidly entering a critical new phase. Multiple entities are either already in administration or are just days away from entering formal insolvency processes – yet many loan note holders (LNHs) remain unaware of the full scale and seriousness of what is happening.

Moreover, several key court decisions have now been made. Below is a breakdown of what’s occurred, what’s coming next, and-most importantly – what you can do to protect your position.

Recent Court Actions Involving 79th Group Companies

1. 79th Luxury Living Six Ltd (LL6)

• Action taken by I&L: Winding-up petition issued on 15 April 2025 to put the company into compulsory liquidation with the government’s Official Receiver as liquidator.
• Outcome: T&T Trustees appointed administrators from Grant Thornton on 16 April 2025.
• Current status: Steven Cave and Gareth Latimer of Grant Thornton are now managing the company’s Administration proceedings.

2. 79th Luxury Living Five Ltd (LL5)

• A loan note holder owed £30,000 initiated a winding-up petition against LL5 on 10.04.2025
• I&L support: Insolvency & Law supported this petition.
• Intervention: Another loan note holder, via a solicitor firm, intervened to steer the company into administration instead.
• Current status: The Court has now appointed Interim Receivers, with formal Administrators likely to follow.

3. 79th Commercial Three Ltd (C3)

• Action taken by I&L: Winding-up proceedings began on 15 April 2025 to put the company into compulsory liquidation with the government’s Official Receiver as liquidator.
• Intervention: A different loan note holder instructed the same solicitor firm to pursue administration two days later.
• Current status: Interim Receivers are in place; administration proceedings are now underway.

Other 79th Group Companies

• Directors of The 79th Group have filed to place additional group entities into administration.
• Projection: We expect a wave of formal insolvency appointments in the coming days and weeks.

What This Means for Loan Note Holders

Each of these companies raised money through loan note investment schemes. Now, they are entering formal statutory insolvency – specifically, administration.

Under UK Insolvency Rules, within 8 weeks of a company entering into administration, administrators must publish:

• A Statement of Affairs – detailing the company’s assets and liabilities;
• Administrator’s Proposals – outlining their intended course of action.

This is when loan note holders will begin to understand the true financial position of the company. Early indications suggest the following:

• The total loan notes in circulation vastly exceed the value of secured assets;
• Significant investor losses are highly likely.

Why Administration Rarely Benefits Loan Note Holders

Many loan note holders mistakenly assume that administration leads to meaningful recovery. The reality is starkly different.

By UK Insolvency law, all proceeds from asset sales must first be used to cover the costs of the administration, including:

• Insolvency practitioners’ fees,
• Legal and advisory costs,
• Third-party service providers,
• Ongoing operational expenses.

Only after these expenses are covered are funds distributed to creditors.

This means that loan note holders often receive little to nothing through the administration process.

For most investors, significant recovery will require action outside of the insolvency process.

“But The Police Are Investigating – So I’ll Get My Money Back, Right?”

This is a dangerous and unfortunately common misconception.

Yes, the City of London Police are actively investigating The 79th Group. However, criminal investigations and prosecutions, while important, are not a route to compensation if convictions follows.

• Criminal cases take years to resolve.
• Even if successful, they rarely result in financial restitution.

If you want to recover your money, civil action is your only realistic option.

What Are Your Real Recovery Options?

1. Bank Refunds – APP Recovery

If you transferred funds from a UK account to another UK account, you may be eligible to recover funds through:

• The Contingent Reimbursement Model (CRM) Code – for payments made after 28 May 2019;
• The Mandatory Reimbursement Scheme – for payments made after 7 October 2024.

APP (Authorised Push Payment) fraud involves being tricked into sending money to a fraudster’s account-often under the guise of a legitimate investment.

How It Works:

CRM Code Claims (since 28 May 2019)

• If your UK bank is signed up to the CRM Code,
• And you were misled into sending funds,
• You may be entitled to a refund if you acted reasonably.

Mandatory Reimbursement Scheme (from 7 October 2024)

• Applies to UK-to-UK transfers,
• Refunds up to £85,000 per bank per scam,
• Victims must act promptly and comply with follow-up inquiries.

Limitations of APP Recovery:

• International payments are not eligible,
• Cap of £85,000 regardless of the amount lost,
• Banks may deny claims citing issues like “gross negligence” or civil dispute,
• Lengthy resolution times and pushback from banks are common.

APP recovery can be a useful step, but should be pursued alongside other legal routes-especially for larger losses.

2. Proceeds of Crime Act (POCA)

While POCA allows courts to confiscate criminal assets, this route is:

• Unreliable,
• Extremely slow, and
• Rarely results in compensation for victims.

It should not be relied upon as a standalone recovery strategy.

3. Third Party Recovery (The I&L Strategy)

This is the most viable and potentially effective recovery path for serious loan note holders.

Third Party Recovery targets the professional indemnity (PI) insurance of:

• Regulated firms,
• Advisors,
• Promoters involved in facilitating your investment.

Even if these firms ceased trading, the law still required them to maintain PI cover while they operated.

I&L specialises in identifying these entities and unlocking these insurance policies.

How Insolvency & Law Can Help You

Insolvency & Law (I&L) has a proven track record of helping victims recover funds lost through failed investment schemes.

• Work exclusively for creditors,
• Operate fully within regulated UK legal frameworks,
• Investigate regulated firms and their insurance cover,
• Organise group actions to enhance strength and reduce costs.

We don’t wait for the scraps left after insolvency. We go after the parties who caused the harm.

If you’re a loan note holder with The 79rh Group, speak to us today. Waiting could cost you everything.

What You Can Do Now

If you’re a loan note holder affected by The 79th Group Companies’ suspension of payments or if any company owes you money:

Act quickly. Time is critical in insolvency matters.

Email us at: [email protected]

We’ll assess your situation and help you explore real recovery options.

Contact our team today: [email protected]