Burford Capital Share Discussion Threads

[375uv] 25/3/2024 17:11

The London Judge in Argentina's GDP-Linked Warrants litigation, offered Argentina two alternatives to appeal and stay the enforcement of the EUR 1.3 billion judgment: pay or post a guarantee. Argentina chose to post a guarantee in the form of a Letter of Credit issued by Santander and UMB Bank. The guarantee is worth about $330 million.

The chief difference between the London judge and Judge Preska, is that Argentina would not be able to appeal unless it met one of the two alternatives. Preska didn't go that far.

So, Argentina's pledging of the guarantee cannot be viewed as voluntary. It had no other choice.

[chester9] 25/3/2024 16:31

Where there's a will there's a way.From Seb.Argentina announces that it is going to create the RofA Special Trust 2024 in New York to create a guarantee of nearly USD 330 million as a condition to be able to appeal the PBI Coupon ruling in London..

[anon14] 25/3/2024 13:20

Tom, you are still incorrect. The interest rate is variable and depends on the prevailing interest rate at the date of the judgement, which fixes it forevermore. This was decided by the Supreme Court years ago. For your further edification, here is an example link that explains it: hxxps://www.steptoe.com/en/news-publications/is-the-federal-post-judgment-interest-rate-variable-yes-and-no.html

[syoun2] 24/3/2024 18:04

Link to the podcast on Burford AI

hxxps://law-disrupted.fm/ai-and-data-science-in-litigation-finance/

[extrader] 24/3/2024 12:54

Apols Tom
Fear, Uncertainty. Doubt.
'Google is your friend' - in this respect at least.

As to Preska appointment to the SC, Trump has previously successfully 'packed' it in Republican's favour, he'd probably not want to undo his arguably most significant, durable accomplishment to date.
SC appointments are for life.
The Dem-venerated Ruth Bader Ginsburg overstayed/ was allowed to overstay 'en poste', which on her death during Trump's tenure gave him an opportunity...

The reported 'qualification/query' re BUR's results reads :

.."In our forthcoming Form 20-F, we will be reporting a material weakness in our internal control over financial reporting and that our disclosure controls and procedures were not effective in the aftermath of the adoption of our new valuation policy. That material weakness and corresponding controls' determinations relate to the lack of documented available evidence demonstrating the precision of management's application of the process to determine certain assumptions used in the measurement of the fair value of capital provision assets. To be clear, this is an issue of internal documentation of a management process; no material accounting errors were identified as a result..."

AIUI

[tomtrudgian] 24/3/2024 12:40

Thanks anon14. The post judgement interest rate is Federal, and not decided by the presiding court, as is the pre judgement rate. It is based on the average Federal Treasury Bill rate and is variable, not fixed. If it is compounded annually (interest on interest) I apologise.

Thanks Extrader: New York district judges all retire at 65, over 11 years ago for Preska. They can however continue to adjudicate on their continuing cases only. Some including Preska are then promoted as a ‘senior’. This is a very important but not full time role which involves judicial appointments and the administration of all courts.

I am informed that she may be appointed to the Supreme Court if the next US president is a Republican, as she is.

She has no current judicial function, apart from influence, of the forthcoming appeal, and I was wrong to suggest otherwise.

The FY23 audit report has not yet been published.
I am sufficiently stupid to have no idea what FUD-like means.

Tom Trudgian

[kuk1doh] 23/3/2024 12:30

On page 84 they refer to, under the “settlements” section, those with whom they have settled and those “opt out” plaintiffs with whom they continue to negotiate settlements. They have accrued $300M to cover these outstanding settlements for “chicken broiler” damages only.

Beef and Pork antitrust liabilities have their own separate sections underneath.

[reddirish] 23/3/2024 09:41

There was a 'broiler' antitrust case settled in 2021, involving many of the same suppliers, and Tyson was reported as having closed off all future claims - and of having received leniency for cooperation with the DOJ. It's this all the same thing, resurrected somehow?

[kuk1doh] 23/3/2024 08:06

For the scale and complexity of this antitrust matter, see page 84, the Contingencies section of the Tyson annual report. Tyson is just one of the many defendants. They state they are working with US DOJ antitrust division and have received leniency for self reporting… industry whistleblower status. Feels like it has a long way to run. Significant contingencies set aside for paying “opt out of settlement plaintiffs” seeking triple damages in addition to pre and post judgment interest.

[donald pond] 22/3/2024 20:41

Sysco complex to predict because many parties are involved and RICO means any one can be held liable for the whole which makes settling tricky

[three black crows] 22/3/2024 16:56

Sysco CaseAnyone have an understanding of this case in terms of timescale with a settlement ?

[scepticalinvestor] 22/3/2024 15:11

Looking very good now

[extrader] 22/3/2024 10:31

Hi Tomtrudgian
If you didn't think Preska's 'retirement' was relevant, why refer inaccurately to it?
Similarly, why refer to the 'defects' in BUR's accounting methodology referred to by the auditors, when we're explicitly told that the defects are 'non- material'?
These FUD-like questions are then typically followed by a Brutus- like conclusion - "Yet Burford is a wonderful company"!
I am not understanding....

[chester9] 22/3/2024 08:34

https://news.bloomberglaw.com/business-and-practice/burford-notches-win-in-quest-to-take-over-sysco-chicken-lawsuitsWith thanks to time.will.tell

[djderry] 22/3/2024 07:52

Positive ruling in the next phase of the Broiler anti-trust litigation re Sysco and Burford on Bloomberg Law.

[anon14] 21/3/2024 21:56

Tom (25980), You are making two mistakes here. One, the post-judgement interest rate of 5.42% is fixed at the time of judgement and does not change with changing interest rates. Two, unlike the pre-judgement interest rate which is simple interest, the post-judgement interest is compounded.

[375uv] 21/3/2024 18:16

The YPF appeal takes place in the building across the street of Judge Preska's court in downtown Manhattan. Judge Preska is a Federal Judge at New York's Southern District Court. All appeals go to the Second Circuit Court of Appeals. She has nothing to do with this appeal. All she is handling right now is the enforcement.

In the Second Circuit, three judges will hear and decide the YPF case. During the first appeal in 2017/18, the Second Circuit ruled 3-0 in favor of plaintiffs in one issue and 2-1 in a second issue. Argentina has already filed its appeal. Petersen/Eton will do so this coming Monday and YPF will file its defense to plaintiffs' cross appeal on or about April 8.

Hope this helps.

[luweiluwei] 21/3/2024 16:48

5.25% on $6b (their part of Petersen & Eton Park) is $315M.
At full recovery BUR is 10 p/e on just the annual interest on the YPF case.

[laughton] 21/3/2024 16:07

She could hardly be expected to adjudicate on her own judgement though - could she??

[time_traveller] 21/3/2024 15:57

Someone else, or not assigned yet?

[tomtrudgian] 21/3/2024 15:49

Correction: Judge Preska is not listed to adjudicate on the appeal. Does it matter?

[tomtrudgian] 21/3/2024 15:48

Correction: Her Hon L. Preska is NOT currently listed to adjudicate on the appeal. Does this matter either way?

[tomtrudgian] 21/3/2024 14:55

The LSE board. I do not use it, and know of none other.
US district judges must retire at age 65, but they may become lifetime senior district judges. If so they can to continue to finish existing cases only, but it is largely an administrative honorary position. Judge Preska is 76. She will be able to adjudicate on the appeal.

[kirkie001] 21/3/2024 13:48

Tom (25979) - what other Board? And what makes you think Judge Preska has retired - according to post 25964 she had a hearing with YPF on Monday this week?