Monetizing Claims
Claimants who embark upon litigation or arbitration sometimes find that they need to unlock the value of their claim before the final hearing or before an award has been enforced, whether to alleviate cash-flow pressure elsewhere, or provide working capital for the business during the life of the claim.
TheJudge can help claimants find ways to monetize their claims, whether those claims are ongoing or whether the claimant has a decision in its favor, but has not yet been able to enforce the award.
TheJudge accesses a broad spectrum of funders who will consider purchasing the economic rights in a claim where permitted, or equity in the claimant entity bringing the claim. This will typically involve:
– an immediate non-refundable cash payment to the claimant; and
– the funder will assume responsibility for funding the legal or enforcement costs going forward.
Very often the purchase price will include both an upfront payment and a share of any recovery generated by the funder.
When engaged to broker the sale of an award or the economic rights to a claim, TheJudge will conduct an auction in order to maximize the purchase price for the benefit of our client.
Insolvency Claims
There are many reasons that an insolvency practitioner may wish to consider selling an insolvency claim.
However, that does mean that the litigation – being a potentially valuable asset – should not produce a recovery for creditors.
TheJudge has access to a number of specialist funders who focus on the purchase or funding of insolvency claims for either immediate upfront consideration and/or a share of any recovery generated by the funder.
TheJudge can help insolvency practitioners satisfy their duties to creditors by running an auction involving several funders, in order to achieve the maximum potential price for the benefit of creditors.
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