Enforcement of judgment debts and arbitral awards

Obtaining a judgment debt or arbitral award is a significant landmark in any proceedings. However, success in obtaining a judgment or award is only part of the picture; successful litigants also reasonably expect that they will soon see tangible recoveries.

It can therefore be very disheartening for a litigant to realise, despite succeeding, their opponent is not willing to comply with the court’s order and has taken steps to deliberately hide or ‘judgment-proof’ their assets. The battle to enforce the judgment debt or arbitral award has just begun and can end up as long, if not longer, than the initial proceedings.

It is unsurprising that litigants faced with this situation, who may be battle-weary from the steps taken to obtain the judgment, would want to look for alternative solutions which allow them to make a quick recovery and draw a line under the proceedings.

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What is ARF II?

ARF II is a joint venture partnership between Grant Thornton UK and an institutional investor which seeks to provide third-party funding solutions for large-ticket asset tracing and recovery work.?

ARF II is able to provide alternative funding options to litigants who have obtained a final judgment or arbitral award but are now facing an uphill battle to identify and secure assets which can be enforced against.

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What types of judgment debts and arbitral awards is ARF II interested in?

As the global market leader in asset recovery with over 160 experts in 19 locations, the Grant Thornton Insolvency and Asset Recovery team supports ARF II which leverages this expertise by targeting highly complex, cross-border enforcement actions.

ARF II focuses on judgments or arbitral awards which often involve the debtor using complex asset protection structures or moving assets across the globe to disguise their origin. In these situations, the time and cost of carrying out investigations to identify assets capable of being enforced against, and then taking appropriate legal action in relevant jurisdictions, can be very high. Returns are also not guaranteed.

This is where ARF II can assist a litigant by acquiring their rights under a judgment debt or arbitral award. Focused on judgment debts and arbitral awards with a value of over USD 30m, ARF II can take the full weight of an asset tracing and recovery action from the litigant in exchange for an upfront cash payment.

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Previous Experience

The ARF II team is currently enforcing a significant number of judgment debts acquired in the GCC.

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Contacts

If you would like more information, please contact Nick Wood, Nick Morgan, Colin Diss or Prashan Patel who would be delighted to discuss what ARF II can offer further.