Recovering the Unrecoverable: The Art and Science of Fund Recovery💰

Recovery of funds is an art that we at Thakur Advisors have skilfully mastered - Ritchie R Nanda

The 'Global Debt' challenge: A wake-up call

The global debt challenge facing corporations, banks, and high-net-worth individuals (HNIs) is a significant concern, as evidenced by several key statistics and trends:

• Global corporate debt has reached unprecedented levels. As of July 1, 2024, global rated corporate debt outstanding stood at $23.98 trillion, representing a 3.3% increase ($776 billion) over the previous 12 months (source S&P Global)

• The financial services sector has been a major contributor to debt growth, accounting for approximately 60% of the increase in global debt (source - S&P Global)

  
  

• Banks and financial institutions face challenges due to the growing corporate debt. As of October 1, 2024, financial services debt outstanding grew by 3.9% year-to-date, outpacing non-financial corporate debt growth (source - S&P Global)

  
  

• High-net-worth individuals (HNIs) are indirectly affected by these debt levels, as they often invest in corporate bonds and other debt instruments. The surge in corporate bond issuance, with expectations of $1.5 trillion or more in 2025, presents both opportunities and risks for HNIs (source - Goldman Sachs report)

  
  

These examples underscore the critical importance of effective debt recovery strategies to mitigate financial losses due to uncollected debts. Thakur Advisors UK Limited stands as a global leader in addressing this issue, providing innovative and proven solutions for corporations, individuals and financial institutions. Our unmatched experience, strategic methodology, and ethical practices ensure that no debtor can escape their obligations. Here’s a detailed breakdown of our proven recovery process and strategies:

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STEP 1

Comprehensive investigation: The foundation of successful recoveries

The recovery process begins with an in-depth investigation to understand the debtor’s financial position, assets, and intentions. This stage ensures that all actions are based on reliable, actionable intelligence. Key steps include:

• Asset tracing: Leveraging advanced tools and global networks to uncover both visible and hidden assets.

  
  

• Background checks: Investigating the debtor’s financial history, past defaults, and business practices to anticipate potential obstacles.

  
  

• Forensic analysis: Examining financial documents, contracts, and transaction histories to identify discrepancies and opportunities for leverage.

  
  

• Collaboration with experts: Engaging forensic accountants, private investigators, and legal professionals to ensure a thorough investigation.

  
  

The strength of Thakur Advisors UK Limited lies in our meticulous attention to detail. By the time we proceed, we have a full profile of the debtor’s vulnerabilities, making it impossible for them to evade responsibility.

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STEP 2

Strategic mediation: Bringing debtors to the table

Once the investigation is complete, we initiate mediation to resolve the issue efficiently. Mediation is a cost-effective and relationship-preserving approach that often yields quick results.

Our strategy involves:

• Engaging diplomatically: Approaching the debtor with facts, evidence, and a clear understanding of their liabilities.

  
  

• Creating pressure points: Highlighting the consequences of non-payment, such as reputational damage, legal action, or asset seizures.

  
  

• Offering win-win solutions: Proposing structured payment plans or settlements that are feasible for the debtor while ensuring maximum recovery for our client.

  
  

• Using neutral third parties: Employing professional mediators where necessary to facilitate constructive dialogue.

  
  

Our ability to balance firmness with diplomacy ensures that most debtors agree to pay up during this stage, avoiding further escalation.

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STEP 3

Leveraging law enforcement and legal channels when and where necessary

When mediation does not yield results, we escalate the matter using legal and enforcement mechanisms. Our team’s expertise in navigating complex legal systems ensures swift and effective outcomes. This stage includes:

• Filing legal notices: Serving well-drafted legal notices that compel the debtor to take immediate action.

  
  

• Court filings: Initiating legal proceedings in the appropriate jurisdiction to recover the owed amount.

  
  

• Collaborating with law enforcement: Partnering with local and international law enforcement agencies to track and seize assets or freeze accounts.

  
  

• Insolvency proceedings: Filing for bankruptcy or insolvency against the debtor if necessary to recover assets through liquidation.

  
  

By using these measures judiciously and strategically, we increase pressure on the debtor while safeguarding our client’s interests.

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STEP 4

Continuous monitoring and maintaining strict pressure on the debtor

Recovery is not a one-time effort; it requires constant monitoring and adaptability. At Thakur Advisors UK Limited, we ensure the following:

• Track progress: Monitor compliance with payment plans or court orders.

  
  

• Maintain strict pressure on the debtor : Speaking to the debtor, and putting adequate pressure on the debtor is core to our recovery strategy.

  
  

• Engage with stakeholders: Keep our clients informed at every stage, ensuring transparency and alignment.

  
  

This proactive approach ensures that recoveries are completed efficiently, with no loose ends.

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A £10 Million recovery case study - we recovered all the funds in under 06 months 👊🏼

Case study on how Thakur Advisors UK Limited recovered £10 Million of our client's debt within six months

The Challenge: 

A HNI client approached Thakur Advisors UK Limited after their debtor diverted £10 million in funds to offshore accounts, leaving no trace of recoverable assets. The debtor had a history of evading legal obligations and relied on complex financial structures to shield themselves from liability.

Our Approach:

1. Investigation:

   • Conducted a thorough investigation using advanced asset-tracing tools, uncovering hidden properties and offshore accounts linked to the debtor.

   • Engaged forensic accountants to analyze financial documents, identifying discrepancies that indicated concealed assets.

   • Partnered with international networks to gather intelligence on the debtor’s movements and financial dealings across jurisdictions.

     
     

2. Mediation Attempts:

   • Initiated contact with the debtor, presenting irrefutable evidence of their concealed assets and liabilities.

   • Proposed a structured repayment plan, emphasising the legal and reputational consequences of continued evasion.

   • Utilised professional mediators to foster constructive dialogue, ensuring the debtor understood the urgency of resolution.

     
     

3. Legal Action:

   • Filed lawsuits in multiple jurisdictions, leveraging Thakur Advisors’ global reach and expertise in international legal systems.

   • Worked with local law enforcement agencies to freeze the debtor’s accounts and initiate insolvency proceedings.

   • Secured court orders to seize assets, including high-value properties and offshore funds.

     
     

Outcome:

• Faced with overwhelming legal and financial pressure, the debtor agreed to a settlement within six months.

• Thakur Advisors UK Limited successfully recovered the full £10 million for the client, ensuring minimal reputational damage.

• The client’s financial stability was restored, and their confidence in effective recovery solutions reinforced.

  
  

Key Takeaway: 

This case highlights the importance of combining thorough investigation, strategic mediation, and decisive legal action to achieve successful recoveries. Thakur Advisors’ expertise and relentless commitment ensured a favourable outcome for the client.

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Conclusion

With Thakur Advisors UK Limited, no one can escape their obligations. Our unwavering commitment, strategic approach, and ethical practices ensure successful recoveries for HNIs, corporates, institutions, and banks. Whether through mediation, investigation, or legal action, we deliver results that reflect our clients’ trust in us.

THAKUR ADVISORS UK LIMITED

Hyde House

Edgware Road

London NW9 6LH