Insolvency Practitioners

How AxiaFunder (Axia) works with Insolvency Practitioners (IPs)


Summary of process to fund, pursue and resolve an IP claim:


Steps in pursuing claim Weeks Cumulative weeks Comment
1 Initial screening (48-72 hours) 0.5 0.5 2-3 day response time
2 Further due diligence/ source ATE / confirm prefunding in place 1-1.5 1.5-2 Run in parallel
3 Agree funding terms with insolvency practitioner / prepare offer document 0.5-1 2-3 Tried & tested documentation
4 Source funding to fully finance the case to trial 1 3-4 Funds sourced in 1 week or less.
5 Axia uses internal and external legal specialists to pursue the claim and maximise value. Axia continuously monitors the claim to resolution. 12-104 15-108 On average we expect claims to settle within 52 weeks
6 Pay Insolvent company their share of any settlement and distribute remaining proceeds to Axia’s investors. Pay remaining introducer fees. 1 16-109: avg circa 52 weeks Insolvent company/creditors receive contractual share of any settlement

 

Key Features include:

 

Experienced team: Axia is operated by seasoned litigators and investment bankers who are focused on building long-term relationships with IPs.

Initial response within 2-3 days: We will provide an initial assessment on your claim within 2-3 work days. If this is favourable, we will request a period of exclusivity to complete our assessment and source the capital, with a target turnaround time of 1 month or less from initial enquiry to funding.

Flexible claim size: Axia will source funding for claims with value from £50,000 up to £5m

Backed by a private group of high net individuals: We source capital privately from high net worth individuals under NDA via the AxiaFunder platform.

Competitive pricing: An SPV, advised by Axia, buys or funds the claim and seeks to share a competitive proportion of the upside with the insolvent company, compared to other funders in the UK market. The SPV typically shares more than 50% of the net proceeds with the insolvent company.

 

Indicative pricing:

 

Funding approach % £'000s Comment
Claim value 1,000
SPV purchases claim from IP 5
Legal costs paid by SPV 75
       
Gross settlement amount 500
Less reimbursements to SPV (80) Purchase price fee & legal fees
Net settlement amount 420
       
Share of net settlement to Insolvent Company 55% 231 % payout agreed beforehand
Share of net settlement to SPV 45% 189 Deferred ATE premium to be deducted
       
Total payment to Insolvent Company 236
% of net settlement to Insolvent Company 56%
Anecdotally competitive
       

 

If the IP prefers, the SPV will consider fully purchasing the claim for a larger upfront payment to the insolvent company and then taking full ownership of any settlement.

High probability of successful funding: As discussed above, our financing approach means that any given claim is more likely to be approved for funding. In addition, we have partnered with an institutional capital provider who will quickly review cases and the typically agree to guarantee funding.

Convenient process:  We understand that IPs have multiple demands on their time. While we rigorously pre-vet every investment on our platform, we take a common-sense approach to our due diligence and avoid box-ticking merely for the sake of procedure. This helps to minimise the work load for the IPs we work with.  

Experienced team ensures good execution: We will typically take control of the claim and manage it to resolution. Axia’s internal head of litigation has an excellent track record-  winning and favourably settling over 90% of the cases he has assessed or managed. We have partnered with experienced external insolvency litigation experts thereby maximising the likelihood that any claim we help purchase (or fund) achieves a positive result for the insolvent company and the IP.

Full indemnification against adverse cost risk for the IP: Axia sources full adverse cost risk insurance from a panel of partner ATE insurance providers and fully indemnifies the IP against adverse cost risk.

Introducer Fee for IP: Where appropriate, Axia will pay a competitive introducer fee to the IP itself from Axia’s revenues from the transaction. This fee needs of course to be fully disclosed to the insolvent company and its creditors.

For further information please contact us at: cl@axiafunder.com or info@axiafunder.com ; +44 203 286 5922.



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