The first five months of 2017 saw Manolete complete 18 insolvency litigation claims – a rate of almost one completed case per week. A 94% success rate was achieved – only one case involved a write off by Manolete.
Cases ranged from £20k to multi million pound claims, against Directors and corporate enterprises. Total recoveries were approximately £4m.
The large majority of recoveries were paid to Insolvent Estates, where HMRC appeared most often as the major creditor to benefit from the resultant dividend.
11 of the 18 cases (61%) featured Manolete taking an assignment of the case from the Insolvent Estate. In the other 7 cases, Manolete funded the IP and the legal team to pursue the claim.
On all 18 cases the adverse cost risk was covered in full by Manolete at no cost to the case nor to the Estate. No ATE insurance was employed on any case – thus maximising the recovery to the Creditor Estates. On the one case loss, the Estate retained the initial payment made by Manolete and the lawyers were paid in full for their work. Manolete simply wrote off the entire loss.
On all cases Manolete paid for the legal work as incurred – no CFAs were used. Again maximising the return to the Estates.
The average time to complete the cases was 10 months from the date that the Manolete financing began. The fastest being one month, the longest being 15 months.
Manolete has never financed a case via a broker – so Manolete’s % was always 30% – 50% of the net recovery (Manolete only takes any share after all legal costs have been paid – thus aligning Manolete fully with the Creditor Estate). Brokers typically insist on a large commission % to be built into the Funder’s costs, materially increasing the cost of funding. By approaching Manolete direct the IPs and Lawyers who referred these cases therefore maximised the recovery to the Estate.
Particularly on larger cases, a high upfront initial consideration was paid by Manolete to defray a large element of IP and Lawyer WIP incurred prior to our involvement.
16 different external law firms were engaged across the 18 cases.