Insolvency & restructuring
Budget for estates that hold valuable claims and little cash
Financing for trustees, liquidators, receivers and litigation trusts pursuing avoidance, fiduciary, professional liability and fraud claims for the benefit of creditors.
Executive overview
Insolvent estates often hold their most valuable assets in claims: against former insiders, auditors, lenders or transferees. They rarely have the cash to pursue them, and creditors are reluctant to fund litigation themselves.
LOFFCO provides nonrecourse capital that lets the estate office-holder retain experienced counsel and pursue claims to judgment or settlement, with terms structured for court approval where required.
| Claim value | $10 million and above |
|---|---|
| Clients | Trustees, liquidators, receivers, liquidating and litigation trusts, creditor committees |
| Capital use | Counsel, forensic accountants, experts, asset tracing |
| Approval | Terms structured for court approval where required |
| Recourse | Nonrecourse to the estate |
What we finance
Matters we review
- Preference and fraudulent transfer claims
- Director and officer breach of fiduciary duty
- Auditor and professional liability claims
- Claims against lenders and insiders
- Receivership and fraud estate recoveries
- Cross-border insolvency recoveries
Funding structures
Estate litigation funding
Fees and expenses for identified claims, paid as incurred.
Investigation funding
Early capital for forensic work that identifies and values claims.
Claim purchase
Acquisition of claims or of an interest in recoveries, subject to approval.
Trust funding
Capital for post-confirmation litigation trusts.
Underwriting focus
What we test first
The strength of the forensic record, available insurance including D&O towers, the solvency of targets, and priority of recoveries under the plan or court order.
Industries served
Process timeline
Indicative timeline
Overview
Response within five business daysConfidentiality
Weeks 1 to 2Diligence
Weeks 2 to 6Term sheet
Weeks 4 to 8Funding
At closing
Timing is indicative and depends on complexity and document readiness.
Questions
Frequently asked
Other solutions
Does funding require court approval?
Often, yes. We structure terms so that the office-holder can present them to the court, and we work with counsel on the motion.
Can you fund a creditor trust after confirmation?
Yes. Post-confirmation trusts are frequent candidates for financing.
How do fraud estates differ?
Fraud estates typically involve many victims and complex fund flows. Tracing and collectability work usually begins before significant litigation spend.
Confidential case review
Start with a nonprivileged overview
Send a short summary of the dispute, the parties and the capital need. We answer every submission within five business days. Substantive materials come later, once a confidentiality framework is in place.