Welcome to the 4th edition of solvent thinking. The last few months have seen further changes to the insolvency and legal landscape. The profession has had to keep pace with the raft of changes brought in.
In this edition we discuss a number of topics from cyber risks to litigation funding. The last decade has seen thousands of highly publicised and cost heavy cyber incidents which have impacted organisations across the globe and across a range of industries. Insolvency practitioners need to make sure their doing enough to mitigate risk, as no company or industry is immune.
Litigation is an increasingly hot topic. The funding of claims is even more of an important issue. The Jackson reforms have seen a rise in the financial threshold of making claims viable. Equally, the rise in court fees is potentially prohibitive to some meritorious claims being brought. Therefore, could damage based agreements (DBA) be the answer? Solicitors are willing to share in the risk of litigation for a fair share of the rewards. This is particularly useful in insolvency litigation where there are either limited or no funds available. However, DBA’s are not seen as attractive to lawyers and the regulations are widely accepted as not being adequate. We consider the review of the DBA regulations and the future of them.
Another element to this is the assignment of office holder claims. Yet another mechanism of bringing meritorious claims and helping to maximise returns to the creditor. However, the volume of options available to insolvency practitioners means that it is key to maintain a close relationship with your broker who can advise on the many options.
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For further information please contact Ed Brittain, Head of Restructuring and Recovery Risk Practice on +44 (0)121 626 7821