transaction-at-undervalue-35-manolete-partners£35k Transaction at Undervalue

IP Firm: London Boutique Recovery Specialist

Type of Investment: Funding the Office Holder

Start Date: October 2012

Completion Date: November 2012 (13 months)

The Office Holder had identified the sale at an undervalue of two valuable well-known High Street restaurant franchises to the Directors’ Newco prior to the insolvency of the original company. For over 12 months the lawyers for the Directors had refused to engage in commercial discussions with the IP.

The claim was relatively small and so the Office Holder was wary of the high costs of litigating the claim using traditional CFA and ATE financing.

Once Manolete Partners agreed to fund the case the other side were immediately notified. The other side knew that Manolete’s policy is to pursue claims to trial. They immediately saw sense in entering negotiations with the Office Holder and his legal advisers. Within just three weeks of signing the Funding Agreement with Manolete, a sensible commercial settlement had been reached. Given the speed of completion the legal costs were minimised on both sides.

“I must say, we found it remarkable how quickly we were able to resolve this after we have got Manolete involved”.– QUOTE FROM THE OFFICE HOLDER

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