Insolvency litigation market grows to £1.5bn

The UK insolvency litigation market has increased by 50% in the past four years to £1.5bn per annum, with litigation funding fast catching up with ‘no-win no-fee’ arrangements, research has revealed.

According to a report by Professor Peter Walton of Wolverhampton University, thevalue of insolvency claims has risen by 50% to £1.5bn since 2015. The study analyses the market since the Legal Aid, Sentencing and Punishment of Offenders Act 2012 came into force in respect of insolvency proceedings in 2016, when conditional fee arrangement success fees and after the event premiums were no longer recoverable from the defendant.

The report – commissioned by litigation funder Manolete Partners – found that half of professionals agreed that third-party funding is the most effective way to quickly resolve an insolvency claim. Meanwhile, three in five of insolvency practitioners have started to use third-party funders or use them more often than before. The study estimates the total value of claims being pursued through litigation funding is likely to be around £720m per year.

Manolete Partners (LON:MANO) work alongside IPs from all of the “Big Four” through to one and two partner specialist insolvency and restructuring practices in the regions. Manolete finances the work of the Insolvency Practitioner and their lawyers to make optimal recoveries for the creditor estates and takes on all the risk.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Manolete Partners

More articles like this

Manolete Partners

Manolete Partners revenue growth of 153% to £19 million

Manolete Partners plc (LON:MANO), the leading UK-listed insolvency litigation financing company, has announced its unaudited results for the six months ended 30 September 2020. Financial highlights: ·      Revenue growth of 153% to £19.0m (H1 FY20: £7.5m); ·      Gross

Manolete Partners

UK facing one million job cuts in 2020 due to coronavirus

Coronavirus could potentially cost one million jobs in Britain this year, with most losses anticipated during the current third quarter, according to a study published on Monday. Job losses could hit 450,000 between July and September,

Manolete Partners

Pizza Express landlords back insolvency package

Pizza Express moved closer yesterday to securing its future after creditors approved the first step in a restructuring that will cost up to 1,100 jobs. Landlords voted to let the chain complete a company voluntary arrangement (CVA),

Manolete Partners

UK insolvencies to rise by over a quarter this year

nsolvencies in the UK are set to jump 27 per cent this year as the fallout from the coronavirus continues, according to Atradius. The credit insurer said that the growth in companies going bust will outpace

Manolete Partners

STA Travel parent company files for insolvency

The Zurich-based parent company of student and youth travel specialist STA Travel is to appoint an external administrator. STA Travel Holdings AG says “day to day“ operations in the UK are unaffected and that this process only affects

Manolete Partners

1 in 3 UK businesses to make job cuts by October

New research has found that one in three businesses across the UK expect to make job cuts by October as the Covid-19 crisis takes a toll on the economy. At least 33 per cent of 2000 businesses