Litigation funder LegalPay closes Rs 12-crore interim financing bond
LegalPay, a litigation finance provider, has announced the successful closure of its Rs 12 crore Interim Financing Bonds. This innovative investment instrument in the fixed income category was launched earlier this year in January and had a coupon rate of 14%. The amount was used to provide interim finance to Lavasa Corporation, which was undergoing corporate insolvency resolution process.
Kundan Shahi, founder & CEO at LegalPay, says the company is thrilled to celebrate the success of its Interim Financing Bonds and its contribution to the economic revitalization of companies like Lavasa Corporation.
“We are proud to have successfully closed our Interim Financing Bonds, but our true pride lies in the impact we create in the legal & insolvency ecosystem and the value we create for our investors and our clients. We are here to alleviate financial burdens, mitigate risks, and ensure that justice prevails,” he said
The closure of the bond in just eight months despite having an original tenure of 36 months with a callable feature is a remarkable achievement for the company.
LegalPay’s Interim Financing Bonds offers a unique opportunity to investors and companies alike. The funds raised through this initiative have been strategically employed to support Lavasa Corporation, a prominent player in the infrastructure sector.
The National Company Law Tribunal (NCLT) approved the resolution plan of Darwin Platform Infrastructure Limited (DPIL), which offered Rs 1,814 crore to the creditors and homebuyers of Lavasa. Raj Infrastructure Development India, one of Lavasa’s creditors, filed a bankruptcy petition against the company after it failed to meet its payment obligations. The petition was approved in August 2018.
A statement by the company says its commitment to a rigorous underwriting process played a pivotal role in mitigating the perceived risks associated with this opportunity.
“In the face of skepticism, LegalPay’s cutting-edge technology and AI-driven analysis, combined with its diligence and expertise, prevailed, resulting in the rapid realization of this investment,” says the statement.
LegalPay provides critical capital to companies undergoing insolvency, breathing new life into struggling businesses, and fueling economic growth. It currently manages claims worth Rs 2,700 crores.
