How does it work?
The process is simple and straightforward:
Law firm identifies all or a portion of its asbestos fee receivables portfolio that it would like to sell. To be eligible for purchase, an award must have been filed, reviewed and approved for payment by one or more of the Asbestos Settlement Trusts. In addition, the law firm must have a contracted agreement with client for specified fees (usually 40% of total award).
Law firm summarizes the receivables portfolio to be sold in a simple easy to use Spinnaker Receivables Template in xls format. (See Appendix A)
Spinnaker provides indicative purchase prices for malignant and non-malignant claim-related receivables.
Parties execute Asset Acquisition Agreement, subject to due diligence.
Spinnaker conducts due diligence on the seller and receivables portfolio. DD topics include:
Selling Firm Overview
Paying Trust(s) Overview
Portfolio data review
Transaction closes and funds within a target period of 30 days.