Litigation Funding in Bankruptcy: Increasing Leverage for Debtors, Enhancing Recovery for Unsecured Creditors

A live 90-minute CLE video webinar with interactive Q&A


Tuesday, January 19, 2021

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, December 18, 2020

or call 1-800-926-7926

This CLE webinar will discuss how nonrecourse investment from litigation funders can be used by companies seeking to restructure and to improve stakeholders’ recovery. The program will cover how litigation finance can offer greater leverage to debtors and unsecured creditors and free up cash, as well as increase the odds of a successful reorganization. The panel will discuss what scenarios work best, pre- and post-petition funding issues, deal terms, protecting attorney-client privilege, dealing with secured lenders, and jurisdictional issues.

Description

Litigation finance is now considered a mainstream tool. It can provide significant benefits at all phases of bankruptcy, not the least of which is that funding is provided on a nonrecourse basis. The entity advancing funds is repaid only out of the expected recovery on the claim.

If the estate's most valuable asset is a claim against one or more entities, litigation funding may substitute for traditional DIP facilities. Alternatively, the debtor may be able to sell some or all of its claim under Bankruptcy Code Section 363 and use those proceeds to pursue litigation on its own terms with its preferred counsel and experts.

Litigation trusts and liquidation trusts --often the only recovery vehicle for unsecured creditors--are excellent candidates, not only when they have single claims, but when there is a high volume of potential cases to pursue.

Listen as our panel of bankruptcy attorneys and funding experts describes how this financing vehicle may offer greater leverage to debtors and unsecured creditors and free up cash, as well as increase the odds of a successful reorganization and greater distribution to creditors. This experienced panel will also discuss plan approval and jurisdictional issues.

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Outline

  1. Overview of litigation funding, its history, and leading firms
  2. Unique aspects of bankruptcy funding
  3. Jurisdictional and choice of law questions
  4. Funding claims of the debtor
    1. The 363 sale model of financing
    2. Funding litigation trusts
    3. Navigating court approval
    4. Conflicts with secured lenders
  5. Protecting privileged information

Benefits

The panel will review these and other key issues:

  • What is litigation funding, and how is it different in bankruptcy?
  • What kind of cases are most attractive to investors?
  • What does the debtor's counsel need to know, and when does counsel need to know it?
  • What considerations must be given to secured lenders in negotiating the terms of any facility?
  • Does litigation funding spawn priority contests or avoidance litigation?
  • What law governs litigation funding?
  • How do you protect attorney-client privilege?

Faculty

Brownstein, Howard
Howard Brod Brownstein (Moderator), CTP

President and CEO
The Brownstein Corporation

Mr. Brownstein provides turnaround management and advisory services to companies and their stakeholders, as well as...  |  Read More

Geise, Amy
Amy T. Geise

Associate Investment Manager, Legal Counsel
OmniBridgeway

Ms. Geise helps steer Omni Bridgeway’s bankruptcy and insolvency initiative from the company’s Houston...  |  Read More

Additional faculty
to be announced.

Live Webinar

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Live Webinar

$247

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Live Webinar & Download

$344

Live Webinar & DVD

$344 + $24.45 S&H

Other Formats
— Anytime, Anywhere

Early Discount (through 12/18/20)

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

$247

Download

48 hours after event

$247

DVD

10 business days after event

$247 + $24.45 S&H