Litigation finance as a tool for generating liquidity in bankruptcy: (In re: MLCJR LLC) Cox Operating LLC Litigation 363 Sale – a case study
- Bankruptcy & insolvency
As US corporate bankruptcies accelerate in 2023, more companies are entering bankruptcy with existing litigation assets in addition to avoidance and other claims that arise post-filing. Debtors and creditors should not overlook a tool to generate incremental value for bankruptcy estates: Selling or substantially monetizing large litigations—valuable collateral that has historically been overlooked as a source of incremental value for a debtor.
The recent 363 auction process run by the debtor and its advisor Moelis & Company in the In re: MLCJR LLC Chapter 11 bankruptcy for MLCJR’s subsidiary Cox Operating LLC’s pre-filing litigation claim generated substantial incremental liquidity for the debtor from a litigation claim that in the past may have been overlooked as an independent source of value.
This webcast took place on November 3 at 11:30AM ET.
Topics:
- Identification of the litigation asset and designing an auction process for a litigation asset
- Generating interest in the asset and auction process
- Due diligence process and valuation by bidders
- Transaction documentation
- Selection of stalking horse bidder and the auction
- Approval of the sale and proposed sale order
- Ultimate resolution of the litigation and benefit to debtor
Speakers
Nathaniel Catez
Executive Director, Moelis & Company
Nathaniel Catez is an Executive Director specializing in Dispute Advisory at Moelis & Company, a leading international investment banking and financial advisory firm, and is based in New York.
He has over fifteen years of trading and investment banking experience, focused on advising companies and/or their stakeholders in a wide range of risk advisory and dispute-related situations across a broad range of industries.
Charles Griffin
Vice President, Burford Capital
Charles Griffin is a Vice President with responsibility for evaluating and executing new investment opportunities and overseeing investments in Burford’s portfolio. He is part of Burford’s litigation finance team and is based in New York.
Emily Slater
Managing Director, Burford Capital
Emily Slater is a Managing Director with responsibility for assessing and underwriting legal risk across a broad range of practice areas and for identifying high-value investments in the marketplace. Ms. Slater has nearly a decade of experience structuring and underwriting legal finance deals and has played a significant role in building Burford’s globally recognized, industry-leading investment and underwriting processes.
