[jacobwilliamroy]

It is literally litigation financing. As in "I don't have enough money to pay my lawyer, but my lawyer doesn't want to work on contingency, so please LEND me some money to pay upfront and I will pay you back later... if everything works out..."

It's litigation financing. It does exactly what it says it is.

[vinceguidry]

You didn’t seem to grasp parent’s point. Debt and equity aren’t apples and oranges, they’re Fuji and Honeycrisp. What makes debt attractive as a lender is recourse, taking that away removes the incentive to lend without other reasons, reasons which invariably look a lot like the ones you would employ in the decision making process to take an equity stake.

[parenthesis]

Yes, debt and equity shade into each other with things like preference shares and convertible bonds.