Liquidator Third Party Funding
The matter of Burnden Holdings (UK) Ltd & Anor v Fielding & Anor  EWHC 2995 (Ch) was interesting in terms of how this dealt with the question of a Liquidator’s firm, in this case Griffins, funding the Liquidator.
There were a number of matters considered in the judgment as to Griffins’ liability for some of the adverse costs but the focus of this post is in terms of what was said as to whether or not the Liquidator’s firm was providing third party funding.
In this matter Mr Justice Zacaroli suggested that the assistance provided by Griffins to the Liquidator, Mr Hunt, was “indeed” third party funding.
In this matter Griffins had provided financial assistance to the Liquidator, (who was one of the Partners in the firm Griffins) to help fund various aspects of the litigation in a case that went right back to 15 October 2013.
The Griffins funding arrangement was approved by creditor resolution in December 2015.
What does this mean for Liquidator firms who provide funds out of the office account to cover routine disbursements? For instance can Insolvency Practitioners in so-called nil asset cases recover say an uplift of 100% for supplying funds to cover Category 1 disbursements for the operation of an insolvent estate?