A new company has been created in Peterborough to help fund the fight against rogue directors.
Ferguson Litigation Funding, in Fengate, has been set up in reaction to legislation that makes it financial prohibitive to bring claims against rogue directors or debtors of collapsed businesses.
We are excited to launch our new venture into the market.Charles Ferguson, chairman
The new firm will fund legal and other costs associated with a claim in return for an agreed share of any successful return.
If there is no recovery, or if the claim is lost, no debt is repayable as it provides protection for the claimant by assuming the risk.
The launch was announced at the Insolvency Practitioners Association (IPA) annual conference.
It has been set up in response to chnages in the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) that cuts recoverable costs for insolvency cases.
Charles Ferguson, chairman at Ferguson Litigation Funding, said: “We are excited to launch our new venture into the market, addressing the pertinent need of liquidators, individuals and corporates seeking the funds to pursue a claim that would otherwise be cost prohibitive.
“It is a significant step forward for us and I would like to thank the IPA for its support and enabling us a platform to launch the business at their esteemed conference.”
The firm’s sister company is specialist law firm Ferguson Financial Solicitors under the leadership of Maurice Power.
Maureen Leslie, IPA president, said: “Litigation funding is a hot topic and one in which our members have a significant interest.”
She added: “I am delighted Ferguson Litigation Funding chose to launch their new company at our annual conference.
“We are always looking for service developments which might benefit our members and we were happy to provide a platform to Ferguson.”