Providing urgently needed cash to a company with year-end financial obligations
Antitrust & competition
Food services corporation
Challenge: Client urgently needed capital before fiscal year end
A national food services provider opted out of a class action and engaged another funder to monetize a pool of antitrust claims. However, the funder’s term sheets unexpectedly offered capital on a recourse basis, requiring repayment regardless of case outcome. The change effectively transformed the deal into debt—which the client’s accounting department would not approve.
Having already accounted for the expected cash flow from the monetization in its year-end financials, the client needed to secure replacement capital in less than two weeks.
Solution: $10 million in working capital
Burford conducted diligence expeditiously and, within ten days, advanced $10 million against the potential award on a non-recourse basis.
Impact: Counsel of choice won $110 million award
An immediate $10 million increase in liquidity reduced the company’s opportunity cost and increased its liquidity in line with its year-end financials.