Litigation Capital Management Ltd Settlement in principle of litigation project (4327T)
20 March 2019 - 8:56PM
UK Regulatory
TIDMLIT
RNS Number : 4327T
Litigation Capital Management Ltd
20 March 2019
20 March 2019
Litigation Capital Management Limited
("LCM" or the "Company")
Settlement in principle of litigation project
Litigation Capital Management Limited (AIM:LIT), a leading
international provider of litigation financing solutions, announces
that a settlement in principle has been reached in respect of one
of its litigation projects.
Highlights
-- Expected to contribute between A$8-10 million to EBITDA for
the current financial year to 30 June 2019; with all capital
invested also being recovered
-- Favourable metrics for the project with the expectation of
returns ahead of the last reported cumulative performance
-- The litigation project was managed to this settlement in
principle in approximately 21 months
-- Fourth litigation project that LCM will complete in the
current financial year
The project relates to an open class action LCM funded on behalf
of certain former shareholders in a resources company formerly
listed on the ASX. The other party is an international professional
services company and prior to a final hearing (scheduled before the
Supreme Court of New South Wales), both parties participated in a
mediation where the settlement in principle was reached.
The settlement in principle of the class action will be
documented in a Deed of Settlement that is expected to be executed
shortly. The terms of the settlement are confidential, and the
settlement is then subject to court approval. Class actions
represent one of several types of litigation projects that LCM
provides funding for across single-case and portfolio funding, as
well as international arbitration, commercial claims and claims
arising out of insolvency.
Patrick Moloney, CEO of LCM, said:
"This settlement in principle demonstrates LCM's experience in
class actions in Australia, while producing favourable metrics
through active project management. We have delivered a successful
resolution for former shareholders in this resources company within
a relatively short time period for a class action of this type.
"We remain encouraged by all the opportunities LCM is seeing as
a London listed company and while class actions are part of our
heritage, we have a diverse portfolio and pipeline of litigation
projects including insolvency, international arbitration and
corporate portfolios."
-ENDS-
CONTACTS
Litigation Capital Management
Patrick Moloney, Chief Executive Officer
Nick Rowles-Davies, Executive Director
Canaccord (Nomad and Broker) Tel: 020 7523 8000
Sunil Duggal / Emma Gabriel
Hawthorn Advisors lcm@hawthornadvisors.com
Lorna Cobbett / Zinka MacHale Tel: 020 3745 4960
NOTES TO EDITORS
About LCM
Litigation Capital Management ("LCM") is a leading international
provider of litigation financing solutions. This includes
single-case and portfolio across class actions, commercial claims,
claims arising out of insolvency and international arbitration. LCM
has an unparalleled track record, driven by effective project
selection, active project management and robust risk
management.
Headquartered in Sydney, with offices in London, Singapore,
Brisbane and Melbourne, LCM has been listed on AIM since December
2018, trading under the ticker LIT.
As at 31 December 2018, LCM's cumulative IRR calculated since
2012 (inclusive of losses) was 78%. Similarly, LCM's cumulative
ROIC was 117%. Both the IRR and ROIC are exceptional figures for
the industry and are testament to the consistent quality of LCM's
approach to funding litigation projects and investments. The
average time to completion was 27 months, as at 31 December
2018.
www.lcmfinance.com
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END
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