Navigating an Empty Victory: What Happens When a Company Has No Assets to Satisfy Your Claim


In the world of business liquidations, registering a claim against a company in financial distress might feel like a step toward recovering your investment. However, this step can often lead to what is known as an “empty win” when the reality of the company’s financial situation comes to light.

Understanding an Empty Win

An empty win occurs when creditors successfully register their claims in a liquidation case, but the company has insufficient assets to satisfy those claims. This scenario is surprisingly common in liquidations where the assets are vastly outweighed by the liabilities.

Example Scenario:

Imagine a company like Silverpoint Vacations, with creditors having claims totaling €180 million. However, the company’s total liquid assets amount to only €1 million due to various reasons, including poor financial management or unexpected business downturns. Out of this €1 million:

  • Liquidator fees, which can vary widely, are typically paid first. Assuming these fees amount to €200,000.
  • Preferred creditors, such as government taxes or employee wages, might claim €300,000.
  • The remaining €500,000 would then be divided among the unsecured creditors, including large and small investors.

In such cases, even if your claim is recognized and validated by the court, the financial recovery would be minimal, if anything, once these distributions are made.

The Strategy of Transferring Liability

Facing an empty win can be disheartening, yet it does not have to be the end of the road. One strategic approach to potentially recover your investments is the concept of transferring liability to another entity within the same corporate group that has sufficient assets. This legal strategy involves:

  • Identifying Related Entities: Legal experts analyze the corporate structure to identify other companies within the group that may not be in liquidation and have sufficient assets.
  • Legal Grounds for Transfer: Attorneys must establish a legal connection between the debts of the liquidating company and these solvent entities, often through arguments based on shared management, fraudulent transfers, or other corporate veil-piercing tactics.

Why Pursue New Legal Action?

While initiating new legal action might seem daunting, especially after an initial empty win, this step can be crucial. Facing reality and taking proactive steps is often necessary to shift from a passive position in a liquidation to an active pursuit of justice and financial recovery.


Although pursuing additional legal action requires more resources and time, the potential to recover significant amounts from solvent entities related to the debtor company can offer a real solution to creditors left unsatisfied by the liquidation process. Legal Exits Worldwide SL, in collaboration with Mesa Abogados, specializes in these complex maneuvers and is committed to exploring all avenues to aid creditors in these challenging situations.

We understand the frustrations that come with having to initiate new actions, but in the face of stark financial realities, understanding your legal options and potentially targeting solvent related entities may provide the best path forward.

For those interested in exploring this strategy further or understanding more about your specific case, consider scheduling a consultation with our legal experts. Your first step towards a real victory may just begin with reevaluating your approach to an empty win

Click here to schedule a free call with a legal expert.

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