ArbiHonor 仲诚 · Legal Finance
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The Firm Overview The FirmTeamCompliance & Governance
Capital Overview Claim Acquisition & Non-Recourse FundingSingle-Case FundingPortfolio FundingJudgment & Award EnforcementLaw Firm Fee FinancingDebt Restructuring & NPL Resolution
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Track Record Track Record
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Solutions

Sell the claim, or pursue it?Six structures, according to the objective.

Most clients come to us to sell. Sometimes, however, the better course is to retain the upside and shed only the cost, and sometimes what is lacking is not merit but liquidity. The underwriting standard is the same whichever structure applies.

01 Principal business

Claim Acquisition & Non-Recourse Funding

Exit at signing

Where a debtor will not pay and the claimant would rather not bear the cost or the wait, we acquire the claim at an agreed price, paid at signing. Every subsequent cost, security obligation and adverse outcome is ours.

Typically suited to
Holders of unsatisfied awards and judgments
Long-dated receivables and non-performing loans
Companies seeking to take a dispute off the balance sheet this period

The claimant gives up part of the possible upside in exchange for certainty: no further fees, no adverse-costs exposure, no three-to-five-year wait. For an award or receivable that has remained unpaid for years, it is often the cleanest resolution available.

Before acquisition, each risk is priced separately: merits, the debtor’s solvency, the location of attachable assets, likely duration, and the friction in each jurisdiction. After acquisition, our balance sheet and managed funds meet every cost, and we instruct counsel. Recoveries above an agreed threshold are shared with the assignor.

02

Single-Case Funding

Non-recourse

For claimants who wish to retain conduct of the case and its upside without bearing its cost. We meet counsel’s fees, experts, institutional fees and security for costs. If the claim fails, nothing is repayable.

Typically suited to
Claims above roughly US$4m
Claimants in SIAC, HKIAC, ICC and similar arbitrations
Parties facing a security-for-costs application

We are paid only out of what is actually recovered, and only in the agreed priority. The cost of the dispute leaves the P&L, stays out of working capital and never appears as debt.

The ideal point of engagement is before filing, although we consider matters mid-proceeding and on appeal. Three questions govern the decision: whether the legal case holds, whether the outcome can be enforced, and whether the timetable can be controlled.

03

Portfolio Funding

Priced as a book

Several claims, none of which quite stands alone. Priced as a book, a loss on one is absorbed by recoveries on the others, and the terms improve accordingly.

Typically suited to
Firms with three or more contingency matters
Groups with related disputes in several jurisdictions
NPL portfolio acquirers

A firm can finance its contingency book to take on more work and smooth its cash flow without giving up partner equity. A corporate group can treat related disputes in several jurisdictions as a single facility.

Because a loss on one matter is absorbed by recoveries on the rest, a claim we would decline on its own can work inside a portfolio.

04

Judgment & Award Enforcement

Judgment is not payment

The award is in hand; payment is not. We fund enforcement in full, trace assets through shareholders and offshore structures, and seek recognition where the assets actually are.

Typically suited to
Holders of unsatisfied awards
Successful parties stalled at enforcement
Insolvency practitioners and liquidators

Judgment is not payment. Debtors routinely move assets into layered structures, into nominees’ names or into another country. We fund the recognition and enforcement effort in full, and coordinate local counsel, investigators and valuers in following them.

Our enforcement channels cover New York Convention states, the Mainland–Hong Kong reciprocal arrangements, and the Cayman, BVI and Jersey courts.

05

Law Firm Fee Financing

Liquidity before the outcome

The contingency work is done; the fee arrives only at conclusion. We monetise that receivable now.

Typically suited to
Firms with meaningful contingency exposure
Firms building out a disputes practice

What limits a contingency practice is usually cash flow, not merits. We finance the receivable built into work in progress, so the firm can take bigger matters, add people, or offer clients more flexible fee terms.

06

Debt Restructuring & NPL Resolution

Special situations

In insolvency and distressed debt, value often sits in recovery actions no one is able to fund. We fund them.

Typically suited to
Administrators and liquidators
NPL portfolio acquirers
Creditor committees in workouts

What a distressed asset is worth often depends on whether the recovery action succeeds, not on the asset itself. Working with audit, valuation and notarial partners, we fund litigation and enforcement for administrators and portfolio acquirers, and advise on the contested terms of a plan.

Structure follows objective

Where the choice is unclear, submit the file. The underwriting team proposes the structure; this is not a menu from which a selection must be made in advance.

Where the objective is to… Structure Upside retained Control retained
Take certain cash now and clear the balance sheet Claim Acquisition & Non-Recourse Funding No — assigned Transferred
See one matter through without bearing the cost Single-Case Funding Yes Yes
Pool several matters to dilute single-case risk Portfolio Funding Yes Yes
Hold a favourable award that remains unpaid Judgment & Award Enforcement Yes Transferred
Smooth contingency cash flow at the firm level Law Firm Fee Financing Yes Yes
Pursue avoidance claims inside an insolvency Debt Restructuring & NPL Resolution Yes Yes

Indicative only. Control and upside allocation are set in the funding or assignment agreement and vary with the forum’s professional-conduct rules.

A written answer within fifteen business days.

Yes, no, or what would have to change for the answer to be yes. Each is worth having before another month of fees is incurred.