Annecto Legal Ltd
2 Contributions by Annecto Legal Ltd Experts
PRACTICE NOTES
Funders regard insolvency disputes as compelling for the following reasons:
claims typically display clear causation and are underpinned by strong documentary evidence and records
insolvency practitioners (IPs), acting as officers of the court, bring credibility and rigour to the process
financial recoveries can be substantial, especially in cases involving director misconduct or asset tracing
This Practice Note discusses seed funding and portfolio funding in detail. For further reading on third party litigation funding more generally, please consult the following Practice Notes set out below:
Third party litigation funding—a guide for dispute resolution practitioners
Third party litigation funding for insolvency practitioners
Third party litigation funding process for insolvency practitioners
Funding and litigating a claim vs selling or assigning a claim
Litigation funding agreements—pricing
Litigation funding
Restructuring & Insolvency
PRACTICE NOTES
Insolvency practitioners (IPs) will recognise the established routes to finance claims, such as conditional fee agreements (CFAs), damages-based agreements (DBAs), third party funding, creditor-backed funding, assigning a cause of action, and after-the-event (ATE) insurance. See: Funding of insolvency litigation and investigations—overview. Yet, for many, the burgeoning practice of using insurance to mitigate not only adverse costs and security for costs but also their own spend is less well known. ATE providers have broadened their offerings to cover own disbursements, counsel’s fees, solicitor’s fees, and the work in progress of restructuring specialists. From 2013, the insolvency litigation funding landscape has had to respond to sweeping changes under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, including the non-recoverability of CFA success uplifts and ATE premiums from the losing side (implementation for insolvency cases was postponed until April 2016). As with
Restructuring & Insolvency
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