Typical Uses
- Paying legal fees and debt for avoidance actions and claims including breach of fiduciary duties, insurance coverage, turnover and tax recoveries, recoupment and setoff issues, equitable subordination and contested matters (i.e., 9019, plan and sale process)
- Covering estate or trust expenses including expert and other bankruptcy financing expenses with contingency counsel, pre-litigation and pre-confirmation investigations and general administrative fees and expenses
- Bankruptcy code or regimes such as debtor possession and exit financing
- Paying for costly pre-litigation or pre-confirmation claims analyses
- Providing a liquidity event that allows an estate or trust to bring new claims, pay other loans and expenses or make distributions to creditors
- Monetizing a bankruptcy case and judgments, de-risking and funding appeals