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Before issuing legal threats, I would write back to them and say that their response is not specific enough and they must explain, in detail, what the operational circumstances outside their control were, why these were extraordinary and why these could not have been avoided even if all reasonable measures had been taken..

They might hang themselves with the reply, allowing you to draft a letter before action (stating how much your claim is etc.) and if they do not respond within a reasonable timeframe (say 14 days), then you could issue a letter before action, followed by a MCOL claim.

You would then appear reasonable in Court and BA would appear unreasonable.