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MANOLETE PARTNERS PLC
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• Established 2009 – exclusive focus on insolvency litigation
• Largest funder (by volume of cases) in the Northern Hemisphere
• Two structures:
I. Buy – claims from insolvent companies/TiB
II. Fund – Office Holders to pursue IA 1986 claims
Overview
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Cases Invested: 135 Completed cases: 95
Two
months
TWO
M
ONTHS
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Funded cases now exceed Purchased cases SBEE Act gives IPs ability to sell IA 1986 claims
Two
months
Two
months
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We work with all the large firms in the Recovery industry…through to the smallest…
DIP Insolvency
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• Minimum claim size: £20k
• No maximum claim value
• IP chooses the legal team
• Manolete pay for counsel opinion, if required
• Fast decision-making: within 1 – 5 days
• (a) Upfront payment + % of net outcome or (b) full upfront payment
• Legal team paid as work done, on normal hourly rates
• Budgets set and paid for each work stage
• IP controls the outcome on funded cases – we have never disagreed
Key Features of the Manolete Model
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• No limit to the amount we fund
• Funding agreement provides full Adverse Cost protection – therefore no ATE cost to
the case
• We pay for everything as incurred: solicitors, counsel, experts, court fees, IP fees etc
• Have never used CFAs – we take all the economic risk
• From settlement monies – 1st we get our costs back
• We then share the Net Return in pre-agreed ratio with Insolvent Company
• Manolete only makes any return when the Insolvent Estate does
• Manolete share usually starts at 50% but falls rapidly as Net Returns increase
• See also our “LCIP” structure case study
Manolete’s Funding Structure
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1. No risk to Creditor Estate – win only
2. No risk to Office Holders + paid for additional large case work
3. Legal team paid as case progresses – completely de-risked
4. Funded case has real credibility with opponents
5. Defeats Security for Costs challenges
6. No charge for ATE – all self funded at no additional cost
7. Fast recoveries on small cases – makes them economically viable
8. High recoveries - Company retains 50-80+% of recovery at no risk whatsoever
9. £1 buy-back option
10. Legacy IP & solicitor costs paid from recovery – often full recovery + creditor dividend
Key Benefits
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Case Study 1: Micro Case
Storage Company
• SME storage company based in North West
• CVL: Jan 2014. Deficiency £109k. No assets remaining in company
• IP identified overdrawn Director’s Loan Account: £46k
• No response to IP’s letters. IP contacts Manolete 26 Jan 2015
• Manolete purchase claim: 29 Jan 2015. £3k upfront + 50/50 split of net
• 12 Feb 2015: LBA sent to Director by solicitors
• 10 April 2015: WP meeting
• Director and his accountants could prove that he had made personal payments to creditors and staff of £16k
• Settlement signed for £30k on 15 April 2015 (10 weeks). £10k upfront + £2k pm for 8 months. Secured on residence. All cash now received
• Fees: £4k. Company recovery: £14.5k
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Case Study 2: Small Case Claim against bank
• Medium sized publishing company
• Last in the line of a number of phoenix companies all factoring with the same bank
• Transaction at undervalue claim/preference in the alternative
• Liquidator funded by Manolete
• Claim vigorously disputed in pre action correspondence
• Proceedings issued
• Immediately following service of proceedings bank changes solicitors who request mediation
• Bank agrees to pay claim in full, plus interest and all legal costs (£200,000), payment made 7 days.
• All IP costs and expenses paid in full, dividend to creditors anticipated
• Claim paid in full 15 months from date of funding agreement
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Case Study 3: Medium Case
Project North
• Well established family owned business, suppliers of specialist plant and machinery
• Company sold and misfeasance/TUV claim against new directors and shareholders
• No monies in the estate to fund litigation
• Liquidator enters into funding agreement with Manolete
• 11 months later: settled at mediation for £750,000
• D&O insurers and directors/shareholders paid full amount in 7 days
• All legal costs paid
• All costs and expenses of the liquidation paid
• Dividend to creditors
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Project Crystal
• Large European Homeware Manufacturer
• UK Sales Company run by “professional” Jersey Directors
• Misfeasance and Wrongful Trading claim
• LCIP structure – solicitors agreed fixed fee of £360k + VAT
• So Manolete agreed to pay £15k pm over 24 months guaranteed
• 14 months later: settled at mediation for £2.4m
• D&O insurers and directors paid full amount in 4 weeks
• Lawyers paid for 10 months “not worked” in final bullet payment
• All IP and Lawyer WIP (prior and post our involvement) paid in full
• Creditors: 4p pre-litigation; 44p post-litigation
Case Study 4: Large Case
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Seven Larger Cases Settled for £4.5m
1. Moore Stephens: £750k - Misfeasance and TUV (11months)
2. Wilkins Kennedy: £200k – 100% of claim value (£169k) plus all costs (15 months)
3. Deloitte: £540k – TUV then Misfeasance (3 years)
4. Stringers: £480k - Preference and TUV and s212 (13 months)
5. BRI: £175k – DLA and s212 (12 months)
6. BDO: £475k – s212 (20 months)
7. BRI: £1.8m – Illegal distribution of capital (12 months)
£2.7m cash returned to the Creditor estate
Last few weeks alone….
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Seven Typical Case Types that Manolete Pursues:
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“The Invincibles” ! - no case losses
Even on “Drop Hands” cases the creditors, IP and lawyers win
Never lost a case
Never paid a single penny of adverse costs
Never claimed on an ATE policy
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Contact Details
Steven Cooklin ACA CF ACSI
Chief Executive
Tel: 01494 618520
Mob: 07900 985559
Email: [email protected]
