Insolvency litigation funding can help maximize recoveries to creditors and other stakeholders involved in the insolvency process. Omni Bridgeway’s Insolvency Insights compilation features articles, podcasts and blog posts addressing the host of opportunities that insolvency funding presents for creditors, impecunious companies, estate representatives and their counsel.
Topics addressed include:
Litigation in the insolvency context
Litigation is one of the primary tools of the insolvency practitioner and serves a key role in driving settlements and recovering assets into insolvent estates. Litigation is also extremely costly, presenting a challenge to those with limited financial resources. A disparity in economic resources can adversely impact claim values, and lead to sub-optimal results like the abandonment of claims or settlements for pennies on the dollar. However, this need not be the case when litigation funding is available.
How a cash-strapped estate can maximize creditor recoveries
One now-common practice of estate representatives and their counsel is to seek to mitigate financial disparities by hiring legal counsel on a contingency basis. However, in many cases, this arrangement offers an imperfect solution. While a contingency fee arrangement may allow the trustee to bring claims he or she might otherwise be unable to afford, it can also limit the upside to the insolvency estate.
Omni Bridgeway’s litigation funding offers an alternative: an insolvent estate can obtain capital to pursue its claims in exchange for a contracted rate-of-return. Funding is now commonplace in the legal industry and is particularly well suited for corporate debtors and trustees handling insolvent estates.
How litigation funding can be used
Litigation funding can be used in a number of ways, including:
By using Omni Bridgeway’s litigation financing, insolvency practitioners can level the litigation playing field and increase liquidity to an insolvent estate or litigation trust. Our non-recourse financing means Omni Bridgeway will recoup a return on its investment only in the event of a successful resolution.
As one of the most experienced and global litigation funders in the world, Omni Bridgeway has an exceptional ability to extend financing and litigation expertise to assist claimants in cases around the world.Please visit Omni Bridgeway’s Insolvency Funding page for additional information about our insolvency funding solutions and expertise.
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