Run-off company seeks £10m investment as it starts new business drive
Strathmore Administration Services (SAS), the company formed to manage the run-off of collapsed claims farmer Invaro, is to take on new business.
It is also in talks to raise over £10m worth of additional investment.
An SAS spokesman said: "We are set up as a player in the market. We are serious about the market and are in here to stay. A large investor is looking at putting a large amount of additional funding into us - in excess of £10m."
The spokesman said that relationships with panel solicitors was the "cornerstone" to success in the future.
"We have entered into a dialogue with a number of firms to assess their needs and assist them, where possible, to grow their businesses."
The company defended its model for handling no-win, no-fee claims.
"In principal there is nothing wrong with the no-win, no-fee model. It is the way that it has been handled that was problematic.
"Historically there has been a lack of vetting. It is important that we do not chase every case. Our risk management structure will be rigorous."
In July SAS was appointed by Invaro's investors to take over the management of the company's claims. This followed the voluntary liquidation of the no-win. no-fee' company in June.
The reason for Invaros' collapse is currently being investigated by liquidator Smith & Williamson (S&W). Tony Murphy of S&W said: "There are a lot of allegations going round. Some are unfair, and some will result in legal proceedings."
SAS would not comment on the reasons for Invaros' demise. But the SAS spokesman said that Invaro's investors did not believe that the company's failure was due to "any inherent weakness in the UK litigation funding market".
