Who we help

Financing solutions for group claims, companies, law firms and banks

For group claims

for companies

for law firms

for banks

You are one of the minority shareholders in a company that has suffered loss due to fraudulent or illegal actions taken by the board of directors or the majority owner. The minority group lacks the necessary funds to pursue a claim or seeks, for other reasons, to mitigate the risks and costs associated with taking action to pursue such claim.

We can finance the entire legal proceedings and hold the minority shareholders harmless from any liability whatsoever (e.g. if the minority shareholders would lose such dispute and face an adverse cost award or judgment). The minority shareholders will have no downside risk, but still be entitled to the majority of the proceeds in a positive outcome of the proceedings.

You are one of the bond holders in a real estate company. The company seeks to amend the terms of the bond by way of a written procedure. The group of bond holders lacks the necessary funds to enforce the security (real estate) granted by the company, or seeks, for other reasons, to mitigate the risks and costs associated with taking legal action.

We can finance the entire enforcement proceedings and hold the minority shareholders harmless from any liability whatsoever. We receive our profit share when the security is realised (sold).

Process

Our funding process may vary from case to case, depending on the specific circumstances. Generally, we strive to work fast and focused by conducting a high-level analysis and providing an indicative offer as soon a practically possible. If you accept the indicative offer, we normally prepare and send out our standard financing/purchase agreement for signature. The agreement may be conditioned upon a more in-depth due diligence, often prepared in cooperation with a law firm or other third party specialist. If and when the due diligence has confirmed our initial findings, the investment is made.

Your company has a disputed claim/non-performing loan but lacks the necessary funds to pursue that claim or seeks, for other reasons, to mitigate the risks and costs associated with taking action to pursue such claim.

We can finance the entire legal proceedings and hold your company harmless from any liability whatsoever (e.g. if your company would lose such dispute and face an adverse cost award or judgment). The company will have no downside risk, but still be entitled to the majority of the proceeds in a positive outcome of the proceedings.

Your company has a claim/non-performing loan and wants to sell such claim and receive cash payment to use in its business.

We can acquire your company’s claim for cash payment.

Your company is in financial distress and needs financing in order to pursue a corporate restructuring.

We can finance such corporate restructuring in a way that is tailor-made to your company’s needs.

Your company has a (domestic or foreign) subsidiary that it seeks to liquidate.

We can acquire the subsidiary and make payment in cash.

process

For dispute lawyers: Your client company has a disputed claim/non-performing loan but lacks the necessary funds to pursue that claim or seeks, for other reasons, to mitigate the risks and costs associated with taking action to pursue such claim.

We can finance your client’s entire costs of the proceedings and hold your client harmless from any liability (e.g. arising from an adverse cost award or judgment). You will be able to assist your client and the client will have the financial resources to pay your fees.

For insolvency lawyers: Your client is in financial distress and needs financing in order to pursue a corporate restructuring.

We can finance such corporate restructuring in a way that is tailor-made to your client’s needs. You will be able to assist your client and the client will have the financial resources to pay your fees.

For insolvency lawyers: You are appointed as receiver for a company under administrative receivership (US bankruptcy estate). The creditors want you to put an end to the administrative procedure as soon as possible in order to receive payment, but the receivership first needs to:

1. liquidate a subsidiary in a foreign jurisdiction,

2. pursue a claim against a former board director, and

3. wait for payment on a loan against another receivership.

We can acquire the subsidiary, acquire the claim against the board director and acquire the claim against the other receivership. All assets of the receivership will be realised, and the creditors will get paid much faster. The creditors are satisfied, and you have received payment of your fees earlier than planned.

For M&A lawyers: You are involved in a transaction where the target has a subsidiary with liabilities (a red flag in the due diligence). This issue risks stalling the transaction several weeks/months.

We can acquire the subsidiary in order to facilitate closing of the transaction.

Process

Our acquisition/funding process may vary from case to case, depending on the specific circumstances. Generally, we strive to work fast and focused by conducting a high-level analysis and providing an indicative offer as soon a practically possible. If you accept the indicative offer, we normally prepare and send out our standard financing/purchase agreement for signature. The agreement may be conditioned upon a more in-depth due diligence, often prepared in cooperation with a law firm or other third party specialist. If and when the due diligence has confirmed our initial findings, the investment is made.

A bank has non-performing exposures (NPE) in its loan portfolio which negatively affect the RAROC, the valuation of the entire loan portfolio, internal pricing and capital requirement. NPEs also increase workload (costs) significantly.

We can acquire the non-performing exposure(s), which will enable the bank to focus on its healthy credits and reduce workload (costs).

A bank has a secured loan with first priority against a company under administrative receivership (US bankruptcy). In some scenarios, the bank will indirectly bear the downside risk with any litigation proceedings initiated by the receiver on behalf of the receivership, without the benefit of any upside if the proceedings are successful.

We can provide dispute financing to the receiver or acquire the claim, whereby the bank avoids the downside risk in this respect.

A bank has a secured loan with first priority against a company under administrative receivership (US bankruptcy estate). The bank seeks to put an end to the administrative procedure as soon as possible in order to receive payment, but the receivership first needs to:

1. liquidate a subsidiary in a foreign jurisdiction,

2. pursue a claim against a former board director, and

3. wait for payment on a loan against another receivership.

Process

Contact

Gustaf Leijonhufvud

Partner

gl@kapatens.com

Johan Skog

Partner

js@kapatens.com

Financing solutions for group claims, companies, law firms and banks

We help groups of shareholders, bond holders and investors to organize and finance their claims

We help companies to focus on their core business, by taking on their legal costs and risks

We help law firms help their clients

We help banks and other lenders to divest non-performing loans as well as to mitigate risk and get paid faster in distressed situations