Affiniti Finance Limited - case update

The Joint Administrators handling the affairs of a litigation funding company have encountered difficulties in collecting information due to the refusal of the company’s managing director to engage with them.

Affiniti Finance Limited, previously one of the biggest legal funders in the UK, entered administration on on 4 November 2021, after a series of events occurred that led to the funder defaulting on its loan with its secured creditor, Fortress Capital. Andrew Hosking, Paul Zalkin and Sean Bucknall of Quantuma Advisory were appointed Joint Administrators.

In their latest progress report, the Joint Administrators advise that they have continued to be significantly hampered by the lack of cooperation by the managing director of the company. The managing director has yet to provide any material information to the Joint Administrators, nor has he agreed to attend any formal interview. As a result, the Joint Administrators and their solicitors have incurred significant time costs in attempts to compel the managing director to cooperate.

The Joint Administrators have, however, been able to secure a financial benefit for creditors through their review of the records, including litigation funding loans, available on the company’s server. For example, during the previous period, the Joint Administrators reported a £1.7 million loan settlement.

The Joint Administrators continue to progress their investigations and consider it likely that further recoveries will arise as a result of these investigations.

The Joint Administrators’ latest progress report can be found HERE. They have been assisted by Macfarlanes, Addleshaw Goddard and Pinsent Masons with respect to legal matters and Intuitive Legal in carrying out audits of the various law firms funded by the company.