Application Granted For Sanction To Enter Into A Litigation Funding Agreement

In the recent decision of in In the Matter of the Companies Law (2018 Revision) and In the Matter of Platinum Partners Value Arbitrage Fund L.P. (In Official Liquidation) the Grand Court of the Cayman Islands granted an application seeking sanction to enter into a litigation funding agreement.

Background

The application was brought by the joint official liquidators (the "JOLs") of Platinum Partners Arbitrage Fund L.P (the "Master Fund") for sanction to enter a litigation funding agreement with LL Finance LLC ("LLF"). Some of the creditors of the Master Fund purport to hold non possessory security interests in the Master Fund's assets (the "PSCs") in respect of liabilities which are considerably greater than net realisations to date. The JOLs informed the Court that funding was required in order to carry out investigations and to pursue litigation for the benefit of the Master Fund's stakeholders. There was a real possibility that, without litigation, no