Business
Successful judgment in Australian investment
Successful judgment in Australian investment.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n \n \n \n RNS Number : 2761I\n Litigation Capital Management Ltd\n 11 August 2021\n \n \n \n \n 11 August 2021\n \n \n \n \n \n Litigation Capital Management Limited\n \n \n (\"LCM\" or the \"Company\")\n \n \n \n \n \n Successful judgment in Australian investment \n \n \n \n \n \n \n \n \n Litigation Capital Management Limited (AIM:LIT), an alternative asset manager \n specialising in dispute financing solutions internationally\n , announces a successful outcome in a court proceeding in Australia, for which LCM has provided funding, where judgment has been delivered wholly in favour of the plaintiffs (funded parties). This investment forms part of LCM's Direct Investment Portfolio and is 100% funded from balance sheet.\n \n \n \n \n \n LCM has provided funding for this dispute of approximately AUD$1.6M to date. If the judgment debt is paid promptly, LCM will generate revenue of approximately AUD$5.6M and profit of approximately AUD$4.0M from this investment. This judgment has been obtained 22 months following the commencement of funding, which is earlier than the 10-year average time to completion of 27 months. \n \n \n \n \n \n In the event that the judgment debt is not paid promptly, and LCM continues to invest in this claim (through the enforcement of the judgment and/ or the funding of any appeal), LCM is likely to generate revenue in excess of this amount as the pricing structure of the financing arrangement is a multiple of invested capital increasing over time. \n \n \n \n \n \n In the event that the defendant appeals, LCM is confident that the judgment entered in favour of the funded party is likely to be retained. \n \n \n \n \n \n \n Patrick Moloney, Chief Executive Officer of LCM\n \n , comments: \"Obtaining this early judgment is an excellent example of a high performing investment for LCM but also of the use of disputes finance by a sophisticated party to manage both capital and risk. We expect this investment to yield higher than our average 10-year returns profile both in terms of IRR and ROIC when finalised.\"\n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n Litigation Capital Management\n \n \n \n \n c/o Alma PR \n \n \n \n \n \n \n Patrick Moloney, Chief Executive Officer\n \n \n \n \n \n \n \n \n \...