Legal finance solutions for distressed companies and insolvency practitioners

Legal finance solutions for distressed companies and insolvency practitioners
Authors:
Eloise Matsui
Investment Manager - China
Marijn Flinterman
Senior Investment Manager, Head of DARP - The Netherlands
Ken Epstein
Senior Investment Manager and Legal Counsel - United States

Omni Bridgeway Investment Managers Eloise Matsui, Ken Epstein and  Marijn Flinterman, contributed an article to INSOL International’s Q2 2023 issue of INSOL World discussing the ways distressed companies and insolvency practitioners can utilize legal finance to unlock solutions that can help effect a turnaround or maximize returns to creditors.

In “Litigation Funding for Insolvent Companies” Matsui, Epstein and Flinterman outline common challenges faced by insolvent companies and practitioners and explain how litigation funding can address these challenges. Topics include monetising claims, purchasing claims, funding enforcement of viable judgments and arbitral awards, coverage of adverse costs and providing security for costs orders, and more.

“Cash is often in short supply and IPs (insolvency practitioners) may find themselves unable to raise finance from the existing creditors or traditional financiers. When this occurs, and a company or IP believes it has legal claims to pursue, or claims that could benefit from further development, litigation funding may be an avenue worth considering.”