March 2016 – Manolete Completes 100th Legal Case

To date we have invested in 138 insolvency litigation claims and today saw us complete the 100th of those.

On average, we have completed those 100 cases in just 8.1 months per case. Great testament to our unique model. But there is good reason for this – once defendants appreciate that the IP’s claim is backed by Manolete, they (usually) soon receive good advice from their own solicitors that they would be far better off engaging with us on settlement discussions. A case backed by Manolete will not “go away”. When we back a case, we back it to final completion – be that at an early mediation or a prolonged process through to the Supreme Court. Most defendants see commercial sense in early constructive engagement, rather than endless legal bills.

Many thanks to all the tremendous IPs and their brilliant legal teams who have helped us achieve this important milestone. The fabulous returns to creditors that we have all helped to generate is a source of great pride and the ultimate proof of what we do.

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March 2016 – Manolete to Sponsor Panel and Present at the Insolvency Practitioners Association Annual Conference

We are honoured to have been asked to Panel sponsor and present at the IPA Annual Conference on 21st April 2016. Our CEO, Steven Cooklin, has been asked to join the Roundtable Discussion on “Insolvency Litigation after the LASPO Exemption”.

Steven Cooklin commented: “This is the second time we have been asked to contribute to the IPA Annual Conference. From our first attendance, a few years ago, we were very impressed with the high turnout of senior professionals involved in and around the Insolvency and Restructuring industry. The quality of the speakers and the technical content was second to  none. I am sure the 2016 conference will be equally impressive. I look forward to contributing to the LASPO discussion – Manolete’s financing solutions for insolvency litigation present the IPA membership with the cutting edge tools to deliver high and fast recoveries for the Insolvent Estates that they represent. We finance claims from just £20,000 upwards – so this is relevant for almost all claims.

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March 2016 – Lehman High Court Judgment: Manolete’s Funding Doubles Creditor Returns and Protects Estate from All Risk. Also highlights Manolete’s £1m Adverse Cost Fund (“M-ATE”)

London: A recent judgment in the High Court concerning Longmeade (a company in Lehman Brothers Group) highlighted many of the key strengths of Manolete’s insolvency litigation funding model. The case covered an unusual situation where the Liquidator had strong legal advice on the merits of a US$26m claim, however, the large majority of creditors were opposed to the claim being pursued.

Mr Justice Snowden said, the Liquidators: “have arranged for a litigation funder [Manolete Partners] to finance the pursuit of the Claim on terms that mean there will be no cost and no financial risk to the insolvent estate”. [Emphasis added]

Mr Justice Snowden drew attention to Manolete’s funding package including, “100 per cent funding for the Claim”. Unlike other methods of funding insolvency claims, Manolete’s funding covers every single cost of the case, including solicitors, counsel, experts and (on larger cases such as Longmeade) additional IP work. The Judge continued: “to deal with a further concern raised by one of the creditors, Manolete’s offer also includes an indemnity in relation to the additional management costs of keeping the Longmeade liquidation open to pursue the Claim”.

While Manolete’s standard funding agreement provides for complete adverse cost cover, Mr Justice Snowden also remarked that in this case Manolete was also providing: “a deposit of £1 million to provide cover against adverse costs”. This demonstrates Manolete’s unique alternative to expensive ATE policies. Manolete’s “M-ATE” product provides a cash sum held directly by the Office Holder’s solicitors and held solely to the Office Holder’s order in case of any Security for Cost or Adverse Cost order.

He continued: “if successful, even allowing for the share of recoveries payable to the funder, the Claim would double the likely return to creditors in the liquidation”. [Emphasis added]. Consequently by partnering with Manolete, there was no possible reduction in the creditor dividend (even if the case failed): if it succeeded, the creditors would enjoy a doubling of their dividend.

Mr Justice Snowden summarised: “the Liquidators have also sought to make it as attractive as possible for Longmeade to bring the Claim…. In short, the position has been reached that the litigation could be pursued at no financial cost or risk to Longmeade”. [Emphasis added].

The judgement comes just a few weeks before the lifting of the exemption to LASPO to insolvency proceedings, which promises to have a significant impact on the insolvency market.

The full judgment can be found by following this link:

http://www.bailii.org/cgi-bin/markup.cgi?doc=/ew/cases/EWHC/Ch/2016/356.html

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