New allegations are emerging that Affiniti Finance lent thousands of law firms millions of dollars, only to leave its financier empty handed. Now in administration, Affiniti’s creditors have concluded the firm cannot keep it’s doors open while operating an orderly run off.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
New allegations are emerging that Affiniti Finance lent thousands of law firms millions of dollars, only to leave its financier empty handed. Now in administration, Affiniti’s creditors have concluded the firm cannot keep it’s doors open while operating an orderly run off.
LelgalFutures.co.uk reports that Affiniti engaged Consumer Credit Act contracts to disburse monies associated with personal injury and claims related to mis-selling. Now, many of the aforementioned agreements are under investigation by auditors. Apparently, a series of events transpired resulting in Affiniti defaulting on its obligations to longtime financier, Fortress Capital.
Affiniti’s dependency on Fortress was crucial, so when the hedge fund decided to cease funding, Affinity lost its ability to operate. Now auditors are left to sift through Affinity’s loan book to understand the firm’s financial position.
As recently as 2020, Affiniti announced plans to raise a $500M capital raise with plans to invest in as many as 5,000 new claims. However, it seems those plans were a pipe dream, at best.
