Please find enclosed the Liquidators first progress report to members and all known creditors for the period from 31 July 2014 to 30 July 2015.

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1 To members and all known creditors 29 September 2015 Our ref: NM/DC/Cobbetts/ /CVL1204a Dear Sir/Madam Cobbetts LLP - in creditors voluntary liquidation Please find enclosed the Liquidators first progress report to members and all known creditors for the period from 31 July 2014 to 30 July If you have any queries in connection with the report, please contact Nadia Mann on who will be pleased to deal with them. Alternatively, if you have a query regarding your claim, please contact Lynsey Turner on Yours faithfully Lyn Vardy Joint Liquidator Enclosure: First progress report Lyn Vardy and Toby Underwood have been appointed as Joint Liquidators of Cobbetts LLP. Both are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England & Wales. The Joint Liquidators are Data Controllers of personal data as defined by the Data Protection Act PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the Liquidation. PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP T: +44 (0) , F: +44 (0) , PricewaterhouseCoopers LLP is a limited liability partnership registered in England with registered number OC The registered office of PricewaterhouseCoopers LLP is 1 Embankment Place, London WC2N 6RH. PricewaterhouseCoopers LLP is authorised and regulated by the Financial Conduct Authority for designated investment business.

2 Cobbetts LLP in Creditors Voluntary Liquidation ( the Partnership ) Report to members and creditors As you are aware, Lyn Vardy and Toby Underwood were appointed Joint Liquidators ( the Liquidators ) of the Partnership on 31 July 2014 following a period under Administration from 6 February 2013 to 31 July In accordance with Rule 4.49C of the Insolvency Rules 1986 ( IR86 ), this is the Liquidators first progress report to members and all known creditors covering the year to 30 July Attached at appendix A is a summary of the financial information relating to the Liquidation. Asset realisations The Partnership s assets realised are as follows:- Realisations ( ) Surplus from Administration 1,47 9, Rates refunds 7 4, Pre-appointment V AT refund 39, Bank interest gross 3, Sundry receipts 2, Book debts T otal 1,599, Surplus from Administration This is the balance of funds transferred from the former Administrators account into the Liquidation. Rates refunds This is a business rates refund negotiated by the Liquidators agents in respect of the Partnership s Birmingham premises. Sundry receipts This represents transfers of funds held in agents client accounts pre-appointment. Book debts This consists of a dividend from Welchs Parks Limited (In CVA), and a pre-appointment book debt recovery of Unrealised assets On appointment, the Liquidators were made aware of various assets that remained to be realised. I have therefore summarised briefly hereafter those remaining assets that await realisation.

3 VAT Bad Debt Relief claim A claim has been submitted for VAT bad debt relief in respect of those Partnership book debts that are deemed uncollectible and have been written off. The claim exceeds 1 M and is currently under consideration by HMRC. The claim may be subject to set-off which could exceed the value of the claim. In this case, there would not be a cash benefit to the estate but there could be a reduction in the total amount of creditors claims. Business rates claim Various claims have been pursued for a recovery of business rates in respect of the Partnership s former premises. The last expected refund is currently in negotiation and may generate a recovery in excess of 100,000. Any recovery will be subject to costs of the agents retained to pursue the claim. Legal actions We are considering a number of possible legal claims and are still collecting the necessary information from the former Administrators and reviewing the Company s books and records. We are also seeking legal advice in respect of these potential claims. Monies due under the Sales and Purchase Agreement ( SPA ) A reconciliation of an account between DWF LLP ( DWF ) and the Partnership should be concluded shortly. This represents monies due in accordance with the SPA by which DWF acquired the business and certain assets of the Partnership. It is expected that this should generate a balance to benefit the Partnership estate. Miscellaneous balances Some further recoveries representing balances not covered by the terms of the SPA are also being pursued. Outcome for creditors Secured creditor The balance of the secured creditor s secured claim is 336,687. As you will be aware, the final balancing payment to Lloyds TSB Bank was delayed pending the conclusion of a trust claim made by former members of the Partnership. The Liquidators response to this claim is ongoing, however, the Liquidators are still not able at present to make this final payment. Preferential creditors Enquiries into the status of unpaid contributions to the Partnership s pension scheme remain ongoing. Unsecured creditors The Liquidators would confirm their intention to make a distribution to unsecured creditors as soon as possible however the ongoing trust claim presents an impediment to that outcome as the Liquidators are obliged to take into account the consequences should the trust claim raised succeed. In an attempt to understand the effect of the potential trust claim it should be noted that if successful, the trust status would attach to some, if not all remaining LLP assets, which would enable the beneficiaries of the trust to rank ahead of unsecured creditors.

4 The Liquidators are hoping to reach a conclusion on this matter within the next couple of months. With regard to the agreement of creditors claims, the Liquidators would confirm that a claims process has commenced and numerous claims received. A formal Notice of intended dividend has yet to be issued however any creditor that has yet to have its claim agreed should contact my colleague Una Warnock on An estimate of the likely dividend is difficult at present as total claims are expected to be much reduced from the statement of Affairs amounts disclosed in the Administration of 91.6 M. Investigations The affairs of the Company prior to Liquidation have been considered and any points raised by creditors, in discharging the Liquidators duties under the Company Directors Disqualification Act Creditors are reminded that the Liquidators have a statutory obligation to consider the directors conduct and to submit a return/report to the Insolvency Service. The Liquidators have complied with this requirement. Professional advisers On this assignment the Liquidators have used the professional advisers listed below. Name of Professional Nature of Work Basis of Fee Arrangement Adviser Pinsent Masons LLP Legal advice Hourly rates and disbursements Bond Dickinson LLP Legal advice Hourly rates and disbursements GVA Grimley Ltd Business rates review Percentage of realisations Iron Mountain Archiving Industry rates The Liquidators choice was based upon their perception of the advisers experience and ability to perform this type of work, the complexity and nature of the assignment and the basis of the fee arrangement with the advisers. Liquidation Committee A Liquidation Committee was established from the existing Administration Creditors Committee consisting of: Wesleyan Bank Limited, represented by Steve Wilkinson Syscap Limited, represented by Mark Henry Close Leasing Limited, represented by Liz Wadsworth New Ireland Assurance Company Plc, represented by Niall Browne The Liquidation Committee has meet formally once since the Liquidators appointment, and has received periodic updates thereafter. A further formal meeting of the Liquidation Committee should take place shortly. Liquidators remuneration At the first meeting of the creditors committee held on 7 November 2014 a resolution was passed to enable us to draw remuneration by reference to the time properly given by us and the Liquidators

5 staff in attending to the matters arising in the winding up. Fees of 97, have been drawn pursuant to that resolution. To 30 July 2015, the Liquidators have incurred time costs of 292, This represents hours at an average hourly rate of Against this 97, has been and the balance will be drawn in due course. These figures include a change in charge out rates effective from 1 July It has been the Liquidators policy to delegate the routine administration of the Liquidation to junior staff in order to maximise the cost effectiveness of the work performed. These staff have been supervised by senior staff and by us. Any matter of particular complexity or significance that has required responsibility of an exceptional kind has also been dealt with by senior staff and by us. Details of the time costs incurred from the Liquidators appointment on 31 July 2014 to 30 July 2015, by work category, are attached at appendix B. In common with all professional firms, scale rates increase from time to time over the period of the administration of each insolvency case. PricewaterhouseCoopers LLP, or any successor firm, reserves the right to change the rates and grade structure. Following the passing of the fee resolution on 17 November 2014 the charge out rates were increased on 1 July Full details of the charge out rates charged to this case are included at appendix B. Specialist departments within PricewaterhouseCoopers LLP, such as tax, VAT, property and pensions, sometimes charge a small number of hours should the Liquidators require their expert advice. Their rates vary, however, the figures given provide an indication of the maximum rate per hour. Liquidators disbursements Category 1 disbursements The Liquidators have incurred the following Category 1 disbursements (excluding VAT), all charged at cost, during the period 31 July 2014 to 30 July has been drawn in this respect. These are shown on the attached receipts and payments account. Amount Disbursement ( ) Rail fares Company searches 3.00 Courier services Insurance Postage Archiving Category 2 disbursements The Liquidators current disbursements policy, as approved by the creditors, is as follows: 1. Photocopying for circulars or any other bulk copying is charged at 5p per sheet; 2. Mileage this is reimbursed at a maximum of 71p per mile (up to 2,000cc) and 93p per mile over 2,000cc).

6 All other disbursements are reimbursed at cost. The Liquidators have incurred in respect of photocopying during the period 31 July 2014 to 30 July 2015, of which has been drawn. These are shown on the attached receipts and payments account. Statement of expenses The following expenses have been incurred during the period of the report, irrespective of whether payment has been made: Expenses incurred Expenses paid to 30 July 2015 Expenses outstanding at 30 July 2015 T otal expenses incurred to 30 July 2015 Agents' fees and disbursements 18, , Settlement of insurance claim 83, , Office holders' fees 97, , , Office holders' expenses Legal fees and expenses 37, , , Legal expenses relating to the Administration 7, , Statutory advertising Bank charges T otal 245, , , Additional information If any creditor requires further explanations on any aspect of this progress report, then please telephone or write to Nadia Mann who will be pleased to deal with such enquiries. Creditors have the right to ask for more information within 21 days of receiving this report as set out in Rule 4.49E of the Insolvency Rules Any request must be in writing. Creditors can also challenge the Liquidators fees and expenses within eight weeks of receiving this report as set out in Rule This information can also be found in the guide to fees via the link below:

7 Appendix A Receipts and payments account Floating charge receipts Floating charge payments 31 July 2014 to Total for the 30 July 2015 period Rates refunds 7 4, , Book debts Sundry receipts 2, , Bank interest 3, , Surplus from Administration 1,47 9, ,47 9, Pre-appointment VAT refund 39, , ,599, ,599, Agents' fees and disbursements 1 8, , Settlement of insurance claim 83, , Office holders' fees 97, , Office holders' expenses Legal fees and expenses 37, , Legal expenses relating to the Administration 7, , Statutory adv ertising Bank charges , , Net floating receipts/payments 1,353, ,353, VAT receiv able 43, VAT refund (36,433.90) VAT balance (receiv able) (7,355.96) (7,355.96) Balance on interest bearing current account 1,346, ,346, The statement of affairs figures have not been included as a number of asset realisations and repayments were carried out in the Partnership s administration and would not relate to the Liquidation s recoveries/payments. The Administrators final receipts and payments account including statement of affairs figures can be found in the Administrators final progress report dated 1 August 2014.

8 Appendix B Cobbetts LLP - in creditors' voluntary liquidation Analysis of time costs for the period from 31 Jul 2014 to 30 Jul 2015 Aspect of assignment Partner Director Senior Manager Manager Senior Associate Associate Secretarial Total hours Time cost Average hourly rate 1 Strategy & Planning , Secured creditors Trading Assets , Inv estigations , Creditors , Accounting and treasury , Statutory and compliance , Tax & VAT , Employ ees & pensions , Pre-appointm ent work Closure procedures Unknown SIP 9 category Total for the period , Brought forward at 30 Jul Total ,877.30

9 Appendix B Narrative of work carried out for the Partnership Key area of work Strategy and planning Work undertaken in the period includes Liaison with former Administrators Meetings and calls with solicitors Internal meetings to discuss case strategy Planning for committee meeting Internal case notes Setting budgets Agreeing and raising fees Performing risk management checks Setting up systems for the liquidation work Assets Investigations Creditors Accounting and treasury Liaising with agents in relation to book debt collections Liaising with agents in relation to rates and other refunds Meetings and correspondence with DWF regarding the reassignment of book debts to the Liquidation Meetings and correspondence with lawyers in respect of various potential asset recoveries Dealing with claims against the Liquidation Dealing with the surrender of leases Meetings and correspondence in relation to contentious asset recovery issues Performing a forensic review of the Partnership s computer files and documentation Carrying out a directors conduct review and submitting return to the Insolvency Service Responding to creditor queries Correspondence and review of information relating to contentious creditor claims Internal meetings to discuss contentious claims Preparing for creditors committee meeting and drafting minutes Attending creditors committee meeting Issuing regular updates to creditors committee Collating and maintaining creditor addresses Reviewing creditor claims and uploading data to the Liquidators system Issuing non-statutory letter to creditors regarding the submission of claims Opening Liquidation bank accounts Authorising and processing payments and receipts Periodic bank reconciliations

10 Statutory and compliance Tax and VAT Employees and pensions Drafting and sending initial letters and notifications following the commencement of the Liquidation Statutory advertising Liaising with former Administrators Planning for first progress report to creditors Risk and quality compliance Maintaining internal case databases and information Reviewing and maintaining internal case management system Filing of case documentation Initial review Discussions with internal specialists around VAT matters Analysis of pre-appointment data with a view to submit VAT bad debt relief claim Meetings with VAT specialists to discuss VAT BDR claim Meetings with DWF to discuss VAT affairs Review of legislation in respect of applicability of Crown set-off against VAT BDR claim. s and conversations with HMRC re VAT BDR Quantifying and submitting VAT bad debt relief claim Drafting and submission of quarterly VAT returns Dealing with VAT return queries Liaison with HM Revenue and Customs Issue of statutory notices re pension scheme Liaison with pensions Ombudsman Hourly rates Set out below are the relevant charge out rates per hour worked for the grades of the Liquidators staff actually or likely to be involved on this assignment. Time is charged by reference to actual work carried out on the assignments. There has been no allocation of any general costs or overhead costs. Rate per hour From 1 July 2015 Grade Partner Director Senior manager Manager Senior associate Associate Support staff Rate per hour From 31 July 2014 to 30 June 2015 Specialist departments within PricewaterhouseCoopers LLP, such as Tax, VAT, Property and Pensions, sometimes charge a small number of hours should the Liquidators require their expert advice. Their rates vary, however, the figures below provide an indication of the maximum rate per hour.

11 Rate per hour From 1 July 2015 Grade Partner 1,190 1,130 Director 1,115 1,060 Senior manager 1, Manager Senior associate Associate Support staff Rate per hour From 31 July 2014 to 30 June 2015