Insolvency litigation specialist hails ‘strong pipeline’

An insolvency litigation funding service launched by Liverpool law firm Provenio Litigation a year ago is now backing claims worth more than £10m. Tony McDonough reports

Mark Goodwin
Mark Goodwin, founder of Provenio Litigation in Liverpool

 

Liverpool law firm Provenio Litigation launched its insolvency litigation and financing optimise a year ago and the venture already has an “exceptionally strong” pipeline.

LBN revealed in early 2024 that Provenio had created Optimise to support the work of insolvency practitioners to make the best possible recoveries for the creditor estates.

The liquidator or administrator receives an upfront payment and an agreed percentage of the final recovery on the claim. Now Provenio has revealed Optimise is funding in excess of £10m worth of live claims.

They include directors’ loan accounts, breach of contract, breach of duty, transactions at undervalue, preference, unlawful dividends, wrongful trading and claims against third parties.

“It has been a strong first year for the business,” said Provenio founder and managing director, Mark Goodwin. “In addition to the millions of pounds of insolvency related claims, the pipeline for the year ahead is exceptionally strong across all case sizes.”

Courts ordered 3,230 companies to stop trading in 2024 because they could not pay their debts, up by 14% year-on-year and the highest total on record since 2014. This is according to HMRC’s latest company insolvency statistics.

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Mark added: “With company insolvencies continuing to rise, there are numerous legitimate legal claims against former directors and third parties that might not be pursued due to lack of funds.

“Optimise is bridging this gap, ensuring that insolvency practitioners and creditor estates receive maximum returns. By providing the necessary funding, we are helping to ensure that justice is served and creditors are fairly compensated.”

Operations director Harry Goodwin added: “We have taken on board all the feedback from our insolvency practitioner clients and contacts over the 12 months. “We are providing office holders with a high-quality solution to maximise returns on legal claims.”

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