WALLESS helps crowdfunding platform recover investors’ funds

Representing a client in a situation where a borrower encounters financial difficulties and investors face the risk of losing their investments is a complex legal and strategic challenge, one that the WALLESS team faced while representing a crowdfunding platform.

The borrower, having raised significant funds from investors, encountered financial difficulties, making it virtually impossible to fulfil its obligations. This created a real risk that investors could suffer significant losses, with potential financial and reputational consequences for the client.

WALLESS provided comprehensive legal representation throughout the restructuring proceedings. Over more than a year, one of the greatest challenges was reaching an agreement between more than 13 parties whose legal and financial interests differed significantly and were often conflicting. The resulting multilateral agreement established a legal framework for the coordinated realisation of the debtor’s assets and the maximum possible recovery of funds.

This case demonstrates that even in complex financial distress situations, a well-planned legal strategy and the ability to reach consensus among multiple parties with competing interests can be decisive in achieving a successful outcome.

Legal support was provided by WALLESS Partner Sandis Bērtaitis and Senior Associate, Attorney at Law Māra Beķere.