Case Study: Unlocking £3 Million for Creditors

High-Value Recovery Through Strategic Litigation: £3 million settlement achieved following claim assignment, High Court proceedings and asset preservation action. 
 
Background
Following the insolvency of a UK company, the appointed liquidators identified potential claims arising from cross-border transactions executed prior to liquidation. The claims involved former connected individuals and entities who held key assets through several associated businesses.
 
As is common in complex insolvencies, the estate lacked the financial resources required to investigate and pursue multi-party litigation. To maximise returns for company creditors, the liquidators assigned the claims to Manolete, enabling rigorous analysis and recovery action without exposing the insolvent estate to the substantial litigation costs or risks.
 
The Challenge
The litigation involved multiple defendants, intricate offshore transactions and assets deliberately held through interconnected third parties. Asset recoveries in these scenarios can be particularly challenging where there are concerns that assets may be transferred, dissipated or otherwise placed beyond reach before enforcement action can be finalised.
 
Given the complexity of the claims and the need for urgent protective proceedings, specialist finance and litigation expertise were required to investigate the matters fully, preserve potential recovery sources and pursue the claims through the High Court. Without that support, any potential recovery may have remained unrealised, leaving company creditors with little prospect of a meaningful return.
 
The Manolete Effect
Following the assignment of the claims, Manolete developed the investigation, assumed the litigation risk and commenced High Court proceedings.  Recognising the importance of preserving all potential recovery sources, Manolete successfully obtained proprietary freezing injunctions against the defendants, which remained in force while the claims progressed.  By financing the litigation, securing protective court orders and pursuing recovery through the High Court, Manolete transformed high-risk claims into a secure asset recovery opportunity.
 
Outcome
A settlement payment of £3 million.
 
Key Takeaway
This case demonstrates the immense value of strategic claim assignments for insolvency estates. By purchasing the claims, fully financing the litigation, and securing powerful asset preservation orders, Manolete converted a complex high-risk insolvency claim scenario into a multi-million-pound recovery. The liquidators successfully realised value from the assigned claims without risking estate funds to lengthy and expensive litigation, significantly augmenting the final return to the company’s creditors.

Author: Ronan Butler| Email: rbutler@manolete-partners.com | 07971 628875