Turning a Nearly $700MM Loss into a Favorable Settlement

Learn how Kroll’s sophisticated asset tracing and data analytics capabilities supported a client in need of financial recovery.

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The Challenge

A financial institution experienced a potential loss of more than $700 million arising from its investment in a loan portfolio. The loans had been sold by a third-party institution’s investment funds and the seller of the loans defaulted. The client’s problem was unique because the debtors—a combination of individuals and corporate entities—held a wide array of assets across disparate industries and had avoided making payments on substantial monetary judgments obtained against them in the past by shifting assets across their vast portfolio in a classic “shell game”. The client engaged Kroll to conduct a search for assets owned or controlled by the debtors and assist in their recovery.

Kroll Solution

Kroll performed a complex asset search of the debtors, identifying nearly 300 affiliated corporate entities used by them to hold assets, and assisted in tracing the loan proceeds. Our work also involved mapping of the nearly 2,000 parcels of real property we identified for the debtors and their proxies across 55 jurisdictions in eight U.S. states, using sophisticated data analytics and visualization tools. Kroll’s comprehensive findings helped the client develop and execute its negotiation strategy with the debtors and provided strategic leverage in ongoing debt negotiations.

Kroll's comprehensive findings helped the client develop execute its negotiation strategy with the debtors, supporting various theories of liability, and provided strategic leverage in ongoing debt negotiations.

The Impact

The facts and evidence developed by Kroll were critical to the client’s success in obtaining a substantial financial settlement and a favorable overall resolution of the client’s complex restructuring process. Harnessing our best-in-class technical and industry expertise, Kroll was able to deliver a timely, strategic and comprehensive solution for our client as it successfully navigated a major financial loss that posed grave risk to its business and reputation.

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