We Fund Insolvency Litigation.

How we Work

Why consider litigation funding?

  • Claims in insolvent estates are often not pursued due to lack of funding, despite their merit and their potential to generate significant recoveries for stakeholders.

  • Litigation funding can be used in personal and corporate insolvency cases to monetize these claims and create value for the benefit of all stakeholders.

What kind of claims can be funded?

  • Commercial claims of a debtor that were already in existence or contemplated prior to insolvency.

  • Claims to recover preferences, fraudulent transfers below fair value and unlawful dividends.

  • Fraud claims.

  • Creditor claims under section 38 of the BIA.

  • Claims for breach of director’s fiduciary duties.

  • Claims in special situations outside of formal insolvency proceedings such as estate litigation, shareholder disputes and enforcement of judgments.

  • We also have the ability to provide the monetization of debt, receivables and residual (remnant) assets of an estate.

How is funding structured?

  • We would propose an arrangement to fund the costs of pursuing the claim in return for an agreed-upon portion of the recoveries. Costs covered include the trustee’s fees, legal fees and any court-ordered costs / security for costs orders. We also provide a full indemnity to the trustee and the estate.

  • If creditors would prefer an immediate recovery, we are also open to purchasing the claim outright for an agreed-upon amount.

  • Under either structure, we provide stakeholders with potential for significant upside, with no risk whatsoever. If the claim is successful, creditors get additional recoveries that they would not have received otherwise. If the claim is unsuccessful, the creditors and estate are no worse off, as we will bear the loss.

Benefits

Improved Returns

  • Trustees can monetize claims that otherwise would not be pursued, at no cost to the estate.

  • Creditors can receive immediate cash instead of waiting for the uncertain outcome of litigation. Further, any holdbacks associated with litigation can instead be distributed to creditors.

  • Our involvement and funding brings credibility and seriousness to a trustee’s case, promoting a quicker and better resolution.

No Risk

  • No risk to the estate. If litigation is unsuccessful, we bear the loss, not the creditors.
  • No risk for trustees and their counsel. We fund all professional costs regardless of the outcome of a case and provide a full indemnity to the trustee and the estate.

About Us

Lazarus LF is managed by Henry Louis. A chartered accountant by background, Henry has been involved in the Canadian insolvency industry since 2011, first in the corporate restructuring group of a national firm and more recently as the founder of Insolvency Insider. We draw on a team of seasoned litigators to assess cases and are backed by investors with deep expertise in special situation investing.

Why us?

  • Expertise

    • We understand the insolvency space and use our expertise to develop creative and innovative structures to meet the needs of stakeholders.

  • Speed

    • Our team is small, focused and efficient. We make swift and decisive investment decisions and deploy funds quickly.

  • Deep capital

    • We are backed by a fund with a stable committed capital base of approximately $90 million and can deploy up to $10 million per transaction without any financing contingencies.

Contact

If you have a file that you think may potentially benefit from our funding, send us an email or give us a call. We can assess the case within a week and propose an arrangement for funding.

If we do not think the case is viable, we will share fully the reasons with you, so if you are later challenged on why you did not pursue a claim, you will have strong support. The cost to you is zero.

We are based in Toronto but will fund insolvency claims across Canada.

Key Contact:

Henry Louis, President
Email: [email protected]
Phone: (416) 554-0034