The Power of a Second Look

Our Associate Directors review hundreds of case referrals between them each year and roughly one in four are converted into case investments.

Many cases are initially declined due to insufficient recoverable value. But not all rejections are final. Some are declined for other reasons and, in time, may yet become viable.

Circumstances change and when they do, Insolvency Practitioners often return to us for a fresh assessment. A recent case we revisited is a textbook example of how insolvency litigation is rarely linear.

When we first reviewed the case, we made a fair offer based on the information available. Over time, however, the landscape shifted. The office holder was unable to secure a meaningful settlement from the defendant and offer values deteriorated rather than improved.

In our second review, we:

• re-examined the debtor's net worth - which remained uncertain but included possible equity.
• reconfirmed the claim was strong and clearly documented.
• identified that certain parts of the claim still required some clarification -typical of many insolvent estates.
• then refined our view on quantum and recovery prospects.

The outcome was that we remained keen to support the case - but on revised terms that reflected the updated position.

The takeaway: saying “no” to a litigation funder’s initial offer can be the right call at the time, but when circumstances evolve, revisiting the opportunity can lead to a very different outcome - discipline, data and timing all matter.

For Insolvency Practitioners, it is worth remembering: a second look can make all the difference and lead to a valuable recovery for the Insolvent Estate.