Litigation for Voluntary Arrangements
When a voluntary arrangement is thought to be an option to rescue that entity the presence of litigation, bad debts, or both can often impact the success of the VA or even the be the cause of the problems in the first place. Creditors when considering voluntary arrangements are often concerned about the likely costs of litigation and the difficulties that may be encountered in debt recovery.
Cavendish IP Solutions provides a solution to this problem. We will fund or take assignment of litigation as part of an Individual Voluntary Arrangement or Company Voluntary Arrangement, providing details of our offer for the consideration of creditors in the nominee’s report. This enables the IP to provide a degree of certainty to the creditors and takes the cost of litigation out of the arrangement and places control of the litigation into the hands of the IP out of the directors’ control leaving them to fulfil the other terms of the arrangement.