Burford Capital Share Discussion Threads

[kuk1doh] 08/9/2023 17:32

Anyone else enjoying a cold beverage in the sunshine? Savour moments like these… they are rare. A good group posts on this board… high quality contributors. Good weekend to all.

[extrader] 08/9/2023 17:26

From the judgment :

.."The Court also rejects the Republic’s effort to inject Burford Capital into these proceedings.
This remains a case brought by plaintiffs against a defendant for its wrongful conduct towards them, and the relevant question is what the Republic owes Plaintiffs to compensate them for the loss of the use of their money, not what Plaintiffs have done or will do with what they are owed.
The Republic owes no more or less because of Burford Capital’s involvement. Furthermore, the Republic pulled the considerable levers available to it as a sovereign to attempt to take what it should have paid for and has since spared no expense in its defense.
If Plaintiffs were required to trade a substantial part of their potential recovery to secure the financing necessary to bring their claims, in Petersen’s case because it was driven to bankruptcy, and litigate their claims to conclusion against a powerful sovereign defendant that has behaved in this manner, this is all the more reason to award Plaintiffs the full measure of their damages..."

'Put that in your pipe and smoke it'.

[sogoesit] 08/9/2023 17:13

Yes, some nice language being used by the Judge.
Made me smile!

[extrader] 08/9/2023 16:46

Preska delivers (BUR's arguments re appropriate interest) with both barrels :

.."Instead, the Republic holds up equitable arguments with oil-stained hands. Equity is no refuge for the Republic. The Republic forced Plaintiffs to give it a massive loan after forcibly expelling the members of the YPF board on April 16, 2012, leading to the Repsol representatives of YPF fleeing the country. (Tr. 297:2-8.)

Mr. Kicillof brazenly declared that it would be “stupid” to comply with “the law of YPF itself” or “respect[] its bylaws.” (PX-15 at 25.)

The Republic subsequently enacted the legislation that, purportedly, allowed it to acquire control of YPF without being “stupid” and complying with the bylaws (PX-15 at 25). (PX-2614 (YPF Expropriation Law).)15

It would offend, not serve, equity to allow the Republic knowingly to violate the bylaws, force Plaintiffs to be its involuntary creditors for a massive amount over the course of a decade, and then pay a reduced rate by crying poverty when the bill comes due.16

If the Republic could not extract a return exceeding 8% simple interest on that massive loan, it has been a poor steward, and it does not offend equity for it to bear the consequences. If it did achieve that return or more it is not inequitable for it to turn those proceeds over to Plaintiffs.

It is the size and long duration of the loan the Republic foisted upon Plaintiffs in knowing violation of its obligations that results in the large amount of interest that accumulated – not some exorbitant or usurious interest rate – and it provides no equitable reason to impose a reduced interest rate.

The Republic vigorously took with both hands and stood steadfast in its inequitable refusal to satisfy its obligations to Plaintiffs. It does not offend equity for it to give back now in equal measure.1.."

She also uses Argentine 'expert opinion' to demolish their own arguments.

Priceless!

'For everything else, there's Mastercard'

;->

[ali47fish] 08/9/2023 16:45

what is this game of the share price changng

[gettingrichslow] 08/9/2023 16:44

Yes, US re-opened at 16.35, went over $17.5 briefly, now at $16.6

[scubadiverr] 08/9/2023 16:43

Hopefully Abtan still around to enjoy this moment, but guessing maybe not considering lack of posts.

[scubadiverr] 08/9/2023 16:39

Looks like US open again

[stentorian] 08/9/2023 16:37

Every egg a bird!

stentorian 31 Jul '23 - 23:02 - 24613 of 24808 Edit

"It is crucial to understand the two different positions Burford have amassed in YPF via Petersen and Eton Park.

Petersen
Burford is funding Petersen’s legal fees in exchange for 70% of the proceeds. Burford is contractually obligated to provide the litigating law firms success fees and other expenses, and Burford therefore expects to retain 58-59% of the gross proceeds. In addition, Burford has over time sold 38.75% of their net entitlement
(i.e., 38.75% of the 58-59%, not of the gross proceeds). In exchange for $236 million, retaining 61.25% of their original entitlement for their own book. Thus, Burford should receive just under 36% of Petersen’s gross proceeds (58.5% * 61.25% = 35.8%).

Eton Park
In the Eton Park case, Burford paid $26 million in exchange for rights to 75% of the proceeds, all of which Burford retains on their own book. Eton Park was a much smaller shareholder than Petersen (4% vs. 25%), but because Burford retains its entire Eton Park entitlement, (4%*75%= 3% / 75% =12%) Burford’s Eton Park entitlement is approximately a quarter of their Petersen net entitlement. (Eton Park gross proceeds = 12% of Petersen gross proceeds [3% / 25% = 12%]. Burford’s entitlement for Eton Park is then 9% of Petersen gross proceeds [12% * 75% = 9%], which is a quarter of the 36% of Petersen gross proceeds that Burford is entitled to from the Petersen proceedings.

Jointly
For simplicity’s sake, 36% + 9% = 45% of the total of the whole shebang.

Sensitivity Analysis based on Damages and Prejudgment Interest as at 31/07/23
In full
16 April 7 May
$bn $bn
0% 8,431 4,999
1% 9,383 5,560
2% 10,335 6,122
4% 12,239 7,245
6% 14,142 8,368
8% 16,046 9,491

@45% for BUR
16 April 7 May -------------------Less $1015m carrying value
$bn $bn
0% 3,794 2,250 $17.33ps $10.27ps 2,779 ($12.69ps) 1,235 ($5.64ps)
1% 4,442 2,502 $19.28ps $11.43ps 3,207 ($14.65ps) 1,487 ($6.79ps)
2% 4,651 2,755 $21.24ps $12.58ps 3,636 ($16.60ps) 1,740 ($7.95ps)
4% 5,508 3,260 $25.15ps $14.89ps 4,493 ($20.52ps) 2,245 ($10.25ps)
6% 6,364 3,766 $29.06ps $17.20ps 5,349 ($24.43ps) 2,751 ($12.56ps)
8% 7,221 4,271 $32.98ps $19.51ps 6,206 ($28.34ps) 3,256 ($14.87ps)

No of shares in Issue = 218,957,218"

[liam1om] 08/9/2023 16:36

Suspended in the US pending a further announcemnt. In BUR's RNS today they state its extremely unlikely that they will have a further update today.

Looks like a Monday morning RNS is coming. The award is worth approximately $16billion which is around 2700p, alone.

GL all.

[gettingrichslow] 08/9/2023 16:35

No price in the US since 16.01

[saltraider] 08/9/2023 16:34

Yep ... suspended, I think. Time for everyone to catch their breath. My expectation is it will re-rate big time as soon as the suspension is lifted.

[lomax99] 08/9/2023 16:31

Market closed?

[chester9] 08/9/2023 16:15

Good news. That's it just thought I'd share moment GLA.

[djderry] 08/9/2023 16:13

Game,set and match.

[donald pond] 08/9/2023 16:12

IIRC we were due 38% of the amount so $6bn

[375uv] 08/9/2023 16:09

Here it is.

hxxps://storage.courtlistener.com/recap/gov.uscourts.nysd.440752/gov.uscourts.nysd.440752.493.0.pdf

[scepticalinvestor] 08/9/2023 16:06

why are ppl selling