Bankruptcy Claims Trading & Liquidation Services
Unlock the value of your locked-in capital. We provide specialized liquidity solutions for creditors holding claims in U.K., European, and U.S. Chapter 11 bankruptcy proceedings. Based in London, our firm bridges the gap between the administrative burden of insolvency and the immediate capital needs of your business.
The Claims Trading Process
Documentation / Legals
Why Sell? The opportunity cost
Major Bankruptcies – time frames
Key Benefits of selling
The Claims Trading Process
Navigating a bankruptcy can take years of legal maneuvering and administrative oversight. Transferring your claim to us simplifies this into a streamlined financial transaction.
- Evaluation: We conduct a deep-dive analysis of the debtor’s estate, the seniority of your claim (secured vs. unsecured), and the projected recovery percentage.
- Trade Confirmation: Once terms are agreed upon, a Trade Confirmation is executed, locking in the price and the effective date of the transfer.
- Documentation & Transfer: We utilize industry-standard legal frameworks to ensure a “true sale” of the debt, effectively stepping into your shoes as the legal claimant.
- Monetization: You receive an immediate cash payment, and we assume all future risks associated with the timing and amount of the bankruptcy distribution.
Legal Frameworks & Documentation
To ensure maximum legal certainty and a smooth transfer of title, we operate under three primary documentation regimes:
LMA (Loan Market Association)
Predominantly used for U.K. and European distressed debt. LMA documentation is governed by English law and involves a robust representation from the seller regarding the “chain of title,” ensuring the claim is free from prior encumbrances.
LSTA (Loan Syndications and Trading Association)
The standard for U.S. Chapter 11 claims. LSTA documents are governed by New York law. Unlike LMA, LSTA frameworks often allow the buyer to seek recourse against prior sellers in the chain, providing a different risk-mitigation structure for high-volume U.S. trades.
Bespoke Documentation
For unique or non-standard claims—such as trade payables, rejection damages, or complex litigation recoveries—we draft bespoke assignment agreements. These are tailored to the specific jurisdiction and nuances of the insolvency, ensuring all ancillary rights and voting powers are correctly transferred.
Why Sell? The Opportunity Cost of Waiting
Bankruptcies are notoriously slow. While a “wait and see” approach might theoretically yield a higher nominal recovery, the Time Value of Money (TVM) often proves that immediate liquidity is the superior financial decision.
The “Lost Return” Calculation: If you hold a claim for 10 years waiting for a 50% recovery, but could have sold it for 35% today, you have lost the opportunity to compound that 35% in the S&P 500—which, at a 10% average return, would have nearly doubled your initial capital in that same decade.
Major Bankruptcies: A Timeline of Delays
Many creditors underestimate how long a “mega-bankruptcy” can endure. Compare the decades-long wait for these estates to the performance of the S&P 500, which has historically averaged an annual return of approximately 10%.
| Case Reference | Status / Duration | Historical Context |
| Lehman Brothers | 15+ Years | Filed in 2008; distributions and litigation continued well into the 2020’s. Chpt 11 Still active in 2026 |
| Madoff (SIPA) | 17+ Years | Commenced in 2008; recovery efforts by the Trustee are still active as of 2026. |
| Yukos Oil | 20+ Years | A multi-jurisdictional saga involving the Russian Federation and European courts since 2003. |
| Babcock Borsig AG | 20+ Years | One of Germany’s longest-running liquidations, beginning in 2002. Still active in 2026 |
| EEA Life Settlements | 10+ Years | A complex fund restructuring that has trapped investor capital for over a decade. Still active in 2026 |
| Cuba (London Club) | 40+ Years | Ongoing debt disputes dating back to the mid-1980s. |
Key Benefits of Selling
- Immediate Liquidity: Convert a “dead” asset into working capital within weeks.
- Eliminate Recovery Risk: Protect your balance sheet from the risk of a “zero recovery” or further dilution of the estate.
- Reduced Administrative Burden: End the need for expensive legal counsel and internal monitoring of court dockets.
- Tax Efficiency: Selling at a discount can often allow for the immediate crystallization of a tax loss, providing a further cash-flow benefit.
Ready to monetize your claim? Please contact your sales contact or use the enquiry form below:
