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DUE DILIGENCE
Litigation due diligence
In Zimbabwe it is possible for a creditor to obtain a litigation due diligence report. This is a simple report which lists and describes all pending litigation against a debtor. The report may also contain any decision, order or judgment involving a particular debtor. A litigation due diligence report can assist a creditor to ascertain information or any patterns concerning a debtor and any unsatisfied judgments.
Litigation due diligence may also include a perusal of all letters or correspondence sent to a company’s auditors for their year-end audits titled ‘litigation letters’. This will include a list of all active litigation files, including letters asserting claims and complaints. It also contains information about any court orders or judgments which may have been obtained concerning the company together with any out of court settlement arrangements which may have been entered into.
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