Roser Lawyers acts with Litigation Funders

There has been a lot of hype in the insolvency industry regarding the Insolvency Law Reform Act which came into effect in September 2017. One of the changes to the insolvency law is the implementation of legislation which makes it much easier for liquidators to sell claims. A liquidator is now able to sell potential recovery actions. This is an opportunity for both the insolvency practitioner and purchaser of the action, which should benefit creditors.

For example, in an unfunded liquidation where there is limited prospects of a dividend to any class of creditor and no recoveries available, there is now an easy mechanism whereby the liquidator can sell these potential insolvent trading and other claims to funders or any one for that matter.

Roser Lawyers will review potential recovery actions either for litigation funding or to purchase the recoveries. This is even in circumstances where there is limited information pertaining to the whereabouts or financial capacity of directors of the company; insolvency practitioners may be able to sell potential insolvent trading claims with limited books and records. The advantage of this is that the liquidators may be able to recover some of the costs of the liquidation which they would otherwise not be able to recover in carrying out their statutory obligations and investigations into the failure of the company including reporting to ASIC pursuant to Section 533 of the Corporations Act 2001.

If you are an insolvency practitioner reading this update  and have unfunded matters, or even funded matters, where you are interested in selling potential recovery actions, do not hesitate to contact our office to have a confidential discussion in relation to the potential purchase of such claims.

To find out more Contact Roser Lawyers for more information.