The Frankfurt-based litigation financing company LF Legal Finance SE has secured further options on new cases under its new ‘Distressed Finance’ product: Normally, litigation financing companies finance payment claims and participate in the success of the case: If the case is won, the litigation financier receives a share of the amount claimed.
Legal Finance now also finances cases in which non-monetary claims are asserted using the new ‘Distressed Finance’ model in return for a share of the assets in dispute.
Currently, Legal Finance has secured options in two cases involving international disputes over assets:
Legal Finance has an option to participate in a dispute over real estate. The property is not currently for sale. Under the ‘Distressed Finance’ model, Legal Finance will have an interest in the property if it finances and wins the litigation.
The other case also involves a non-monetary asset in a non-European country. Again, Legal Finance has acquired a binding option on the financing and has an interest in the asset in the event of a positive financing decision and a win in the litigation.