Overview

Bentham IMF’s bankruptcy funding presents a host of opportunities for financially strapped companies, creditors, bankruptcy estates and trustees, and their advisors, seeking to maximize the value of litigation claims.

We partner with stakeholders involved in insolvency-related disputes to ensure that high quality counsel is available when necessary. Lawyers and financial advisors receive a substantial portion of fees and are fully aligned with the interests of their clients.

 

Fundable Claim and Expense Types

Types of Claims Suitable for Funding:

  • Avoidance actions

  • Breach of fiduciary duties

  • Insurance coverage disputes

  • Turnover and tax recoveries

  • Recoupment and setoff disputes

  • Contested matters (i.e., 9019, plan/sale process)

  • Equitable subordination

Estate or Trust Expenses:

  • Expert and other litigation expenses with contingency counsel

  • Pre-litigation and pre-confirmation investigations

  • General administrative costs and expenses

 

Criteria

  • Funding requested must exceed $1,000,000

  • Anticipated judgment must exceed $10,000,000 (exclusive of punitive damages)

  • Defendant must have a clear ability to pay

  • The litigation must have strong prospects of success

Additional Uses

  • DIP and exit financing

  • Pay for costly pre-litigation or pre-confirmation claims analyses

  • Provide a liquidity event that allows an estate or trust to bring new claims, pay other expenses or make distributions to creditors

  • Monetize judgements, de-risk and fund appeals

  • Pursue claims on their merits to their best outcomes

 

Benefits

For Bankruptcy Estate Representatives and Litigation Trustees

Access high-quality counsel and experts without risking estate recoveries. The funding solutions that we offer include:

  • Pre-litigation and pre-confirmation investigations

  • Working capital

  • Fees and costs funding

  • Monetizing appeals

For Law Firms

Meet your clients’ needs, get a piece of the upside and align your interests with your clients; position to win more engagements and increase revenues and profits. The funding solutions that we offer to law firms include:

  • Full or reduced hourly fee funding

  • Risk sharing in single cases

  • Risk sharing in portfolios of cases