Breach of contract related to covid disruption

Client

Spanish portfolio company of a private equity firm

Type of lawsuit:

Contract breach, quantity claim, claim against the public administration

Solutions:

Coverage of adverse claims

Problem

A portfolio company of a private equity firm had a lawsuit against it due to a contract breach attributable to the covid situation. The private equity firm was looking to remove the uncertainty of the lawsuit in view of a potential sale of the portfolio company, and to limit the new capital commitment to avoid further diluting its return on the investment

Solution

Claimbnb structured a solution in which it covered any amount, above a minimum, to which the portfolio company would eventually be ruled to pay. In parallel, it coordinated the legal and economic professionals leading the case to maximize the defense possibilities

Result

The private equity fund had access to a solution that removed the risk of a potential high financial penalty and spared it from the time/attention required to manage the claim

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