Burford Capital Share Discussion Threads

[time_traveller] 10/2/2024 12:20

I'm getting confused here - Rosenthal was several months ago, wasn't it? (Or is there more than one Rosenthal? - I see references to Lee, John and Jeffery). So the champerty argument is not new, and even docherty caveated it to some extent? The ruling yesterday was docherty, and it's ironic because it overruled the wishes of the plaintiff itself, as per the June settlement, and if Carina is barred, then it risks bursting the whole thing open again, creating the wave of further court time, which docherty claims to want to avoid. And is there evidence plaintiffs themselves have a greater propensity to settle, than litigation financiers? - I seem to recall in the Akhmedova divorce case, she wanted to continue for a better award, while it was Burford that pressured for a settlement.
Decision justified by citing "Rule 25(c). As expressly allowed by the Rule, “the action may be continued by the original party,” that is, Sysco."
May, but not must.

[375uv] 10/2/2024 11:52

Pay very close attention to the Champerty argument made by Judge Rosenthal in the Sysco case. Argentina is appealing Judge Preska's interpretation of the Champerty Statute and will probably make reference to Friday's ruling in the February 22 Opening Brief supporting its claim trying to refute Judge Preska's interpretation.

[donald pond] 10/2/2024 08:45

Frustrating. So we are in the position where one court has said Sysco will be in breach of contract if they settle, Sysco have said they want to be out of it, one court has substituted Carina for Sysco and another has said you can't do that

[lomax99] 10/2/2024 07:07

Burford - Sysco rulingHttps://bnnbreaking.com/world/us-judge-ruling-reshapes-litigation-financing-landscape-burford-capitals-setback

[kuk1doh] 09/2/2024 12:36

This board is just the best for getting detailed knowledge on the business cases as exemplified by contributions like the one above… rarely post; regularly read and am thankful!

[bestace] 09/2/2024 11:23

Yes, when Argentina petitioned the US Supreme Court earlier in proceedings, Chile and Mexico each filed amicus briefs in support and the US government filed in opposition. That was on the narrow issue of whether the FSIA commercial activity exemptions applied in this situation and the SC denied cert.

[donald pond] 09/2/2024 09:02

I thought there was an amicus curae from another nation earlier in the process. What can it say? We think countries should be exempt from the rule of law? The problem for Argentina is the same as ever: they knew they would only get the YPF float away with clauses saying what would happen in the case they nationalised it. It is hard to argue that you shouldn't be held to the inducements you voluntarily gave

[chester9] 08/2/2024 07:09

For anyone new to the share watch these videos with Artem Fokin. It's a good watch they are strong believers with or without YPF. They explain continual taking on of debt, why it's a good thing in the long term, why ROCE is really close to 20 or better and why no buybacks. https://youtu.be/q9KfGoexY0c?si=Y3G-67kB07XCZyEr

[chester9] 08/2/2024 07:03

Thanks 375 I keep learningAmicus Curiae literally translated from Latin is "friend of the court." Plural is "amici curiae." Generally, it is referencing a person or group who is not a party to an action, but has a strong interest in the matter.

[maddox] 07/2/2024 13:02

As I mentioned above, BUR did for a couple of periods report forthcoming case milestone (potential settlement) events that showed that there was indeed far, far greater activity towards case settlement scheduled in H2.

Disappointingly, BUR have decided not to continue reporting this very useful non-financial metric. I'd like to suggest that we lobby for this to be reinstated. BUR's objection was that investors kept asking them to put a financial value on impending events - which BUR are not prepared to do. Stupid question to ask IMHO - impossible for BUR to answer. Nevertheless, this is a very useful non-financial metric indicating settlement activity.

[donald pond] 07/2/2024 09:04

They did promise lots of court action last year and q4 is the busy quarter. So some of the jam tomorrow should have arrived

[time_traveller] 06/2/2024 11:55

Why? Burford have disappointed with their results for quite some time now, looking a bit nervous as it is. Decent realisations well over due.

[syoun2] 01/2/2024 19:01

Assuming we will get a 5% plus rise once’s date is announced

[syoun2] 01/2/2024 18:59

Loving the lev of support in both markets whilst we await a date for year end & their next move with Argentina

[extrader] 01/2/2024 14:19

Ashmore's latest offering is a 10 page PDF, too long to reproduce here.The executive summary gives a flavour and an outline road-map.

THE EMERGING VIEW

The Last Tango: The Path to Make Argentina Great Again

By GUSTAVO MEDEIROS AND BEN UNDERHILL

The most interesting investment opportunity in 2024 is also the most controversial.

Investing in Argentinian assets could deliver extraordinary returns, if Milei manages to implement his most essential economic reforms. However, even optimistic economists and analysts struggle to see an open path for these economic reforms to work. This paper does so, proposing the ideal reform sequence, by which Argentina can regain the economic dynamism it displayed in the late 19th Century.

Milei, with the support of Sturzenegger and Caputo is now engaging on Act I, restoring economic competitiveness, balancing fiscal accounts and re-profiling a mountain of short-term debt. This act will be the most difficult to pull off, as it directly challenges the establishment – the Unions and Peronists who have held power for nearly 75 years.

Act II will be simpler, involving a monetary stabilization plan, through which Argentina should benefit from a triple inflow of Dollars from exporters, foreign and local investors.

The third act will be the notorious dollarisation. This will be the least crucial but most controversial of the reforms, in our view, and may become the theme of many Tangos in the future."

GLA

[chester9] 30/1/2024 16:49

Burford Capital Announces Closing of Private Offering of Senior Notes Burford Capital Limited ("Burford" or "Burford Capital"), the leading global finance and asset management firm focused on law, today announces the closing on January 30, 2024 of the private offering of $275.0 million aggregate principal amount of additional 9.250% senior notes due 2031 (the "Additional Notes") by its indirect, wholly owned subsidiary, Burford Capital Global Finance LLC (the "Issuer"). The Additional Notes are guaranteed on a senior unsecured basis by Burford Capital as well as Burford Capital Finance LLC and Burford Capital PLC, both indirect, wholly owned subsidiaries of Burford Capital (such guarantees, together with the Additional Notes, the "Securities"). There was $400.0 million aggregate principal amount of the Issuer's 9.250% senior notes due 2031 (the "Initial Notes") outstanding prior to the closing of the offering. The Additional Notes were initially offered to investors at an offering price equal to 103.625% of the principal amount thereof, plus accrued interest from January 1, 2024, representing a yield to worst of 8.251%. The Additional Notes were issued as "Additional Notes" under the indenture, dated as of June 26, 2023 (the "Indenture"), by and among the Issuer, Burford Capital, as parent guarantor, the other guarantors party thereto from time to time and U.S. Bank Trust Company, National Association, as trustee (pursuant to which the Issuer previously issued the Initial Notes). The Additional Notes have identical terms to the Initial Notes (other than with respect to the date of issuance, the issue price and the first interest payment date) and will be treated as a single class for all purposes under the Indenture. Burford Capital intends to use the net proceeds from the offering of the Securities for general corporate purposes.

[maddox] 23/1/2024 16:51

Rather talk about 'frozen' cases, which implies that they will never progress, we ought perhaps to consider the impact of 'glacial' cases that proceed extremely slowly.

The long-term completed case history ROI has been falling co-incident with the lengthening timeframe to case conclusion. We are told that there are ratchets in the funding contracts to take account of extended timeframes. BUR has no direct control over the progress of a case. The question is whether these ratchets are sufficient to incentivise the client to expedite the case, or adequately compensate BUR for the deployed cash?

OTOH Covid-19 certainly had an impact in delaying case conclusions. The positive prospective view on this is that we might reasonably expect to see mean reversion and a catch-up phase of case conclusions? BUR did for a couple of periods report forthcoming case milestone events that suggested that there was indeed far greater activity towards case settlement. Disappointingly, BUR have decided not to continue reporting this very useful non-financial metric.

The impact of extended settlement timeframes will be masked in the P&L by fair-value accounting. It will of course be exhibited in the B/S and a growing funding requirement. In the face of this case settlement uncertainty suggests that a highly conservative approach to funding is warranted.

[extrader] 22/1/2024 18:18

Ashmore's latest :

.."Argentina: On Friday, there were media reports that the government was close to securing the support of the three other parties in its incipient Congressional alliance to approve the Omnibus Law. According to Clarín, the government is supposedly pledging to lower duration of the delegation of emergency powers, reverse the 15% increase for export tax for regional economies, and modify the article of the retirement reform. Other newspapers speculate that YPF will be out of the privatisation list and that political reforms in the Omnibus bill will be postponed.

The Argentine government seems to be focusing on sweeping deregulation of the economy to undo decades of red tape, betting on the ability to implement further fiscal measures while attracting investments to the country. The good news for the Government is that, after appointing members from other parties – notably Macri’s Juntos por el Cambio – to its cabinet, Milei seems to understand the importance of negotiating its sweeping changes in Congress, increasing the likelihood of its reform programme to be successful.

The negotiation over the Omnibus bill may help the Emergency Decree with more than 300 rules which was issued on 20 December and is valid since the end of 2023 (except the labour chapter, which was successfully challenged in court).

The decree may still be voted down if both Congress and the Senate repeal it by the end of the month or if the Supreme Court rules it unconstitutional.

In economic news, the trade balance moved to a USD 1.0bn surplus in December after a USD 0.6bn deficit in November, as exports rose by USD 0.4bn to USD 5.3bn and imports declined by 1.2bn to USD 4.3bn."

'Steady as she goes'.
GLA

[waterfall city] 22/1/2024 13:31

Do we know why Burford are raising debt privately rather than their previous bond route?