Month: December 2021

Litigation Funding in Bankruptcy and Distressed Situations

Marla Decker

Litigation finance can preserve or increase estate resources for creditors and enable additional recoveries.  Financing can be useful for debtors (or potential debtors), but can also be useful for creditors in intercreditor disputes or other matters and especially useful for a litigation or liquidation trust seeking to prosecute ongoing claims.  Fortunately, courts are recognizing that funding can play an appropriate role in bankruptcy proceedings, with two recent district court opinions leaving intact funding arrangements approved by the bankruptcy court.

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The best way for companies and their counsel to determine if litigation finance is an attractive option is to discuss it with us.