Bankruptcy and Insolvency Funding
Enhance strategic flexibility and preserve estate value in bankruptcy proceedings, estates, or litigation trusts by leveraging CAVEAT CAPITAL’s tailored bankruptcy financing solutions. Our funding resources and arrangements enables access to leading legal counsel and expert advisors without exposing estate recoveries to additional risk.
CAVEAT CAPITAL’s bankruptcy financing solutions support matters at every critical stage, including pre-litigation and pre-confirmation investigations, working capital requirements, professional fees, credit facilities, and the monetization of appellate proceedings. Our bankruptcy and litigation funding advisory structures also enable law firms to better serve their clients’ needs, participate in the economic upside, and align interests with claimholders through carefully structured, non-recourse arrangements.
Typical Applications
- Funding legal fees and claim-related costs for avoidance actions and contested matters, including breach of fiduciary duty claims, insurance coverage disputes, turnover and tax recoveries, recoupment and set-off issues, equitable subordination, and court-approved settlements, plans, and sale processes.
- Covering estate or litigation trust expenses, including expert costs, contingency counsel arrangements, pre-litigation and pre-confirmation investigations, and general administrative fees.
- Supporting debtor-in-possession and exit financing or equivalent insolvency regimes across jurisdictions.
- Financing intensive pre-litigation or pre-confirmation claim assessments where upfront analysis is critical to value maximization.
- Providing liquidity solutions that enable estates or trusts to pursue additional claims, refinance obligations, meet operating expenses, or make interim or final distributions to creditors.
- Monetizing bankruptcy cases, judgments, and appellate rights, including de-risking and funding appeals.
Key Features
- Non-recourse structures, with no repayment obligation where proceedings do not result in recoveries
- Highly tailored solutions, adaptable to specific case requirements, including (where permitted) funding to investigate and establish legal claims through liquidator examinations, counsel input, and expert analysis
- Flexible deployment, available at any stage of the bankruptcy or restructuring lifecycle and across most jurisdictions
- Comprehensive cost coverage, extending to disbursements, adverse costs exposure, and security for costs orders in cost-shifting regimes
- Phased capital deployment, released at mutually agreed milestones to align funding with case progression.
Get in Touch
If you would like to learn more about Litigation Funding and what we can do for you, please contact us.