Litigation Capital Manag... Share Discussion Threads

[greenknight1] 06/12/2022 10:49

Term of the credit facility was 4 years so due Feb 2025.

[williamcooper104] 03/12/2022 05:05

When's the 8-12 IRR debt (that was borrowed from a hedge fund at the top of the credit boom) up for refinancing??? Net debt per last balance sheet date didn't look bad; but if the debt can't be refinanced on non onerous terms, it could still be a problem funding existing/near pipeline cases

[maddox] 02/12/2022 20:56

Hi zangdook, It's always good to hear a negative critique to challenge ones assumptions and investment rationale - so what can you offer us to discuss?

[zangdook] 30/11/2022 07:37

Instead of hearing about pie in the sky claims for billions which haven't been decided yet, I'd like to hear about all the billion pound claims that were won in the past, and the hundreds of millions that LIT accrued from financing those cases.

Oh, there aren't any?

They seem to make ~£10m a year profit.

[spectoacc] 29/11/2022 16:29

@eswr2000 - so LIT get that irrespective of what's rewarded? Or is it capped in some way?

ie if the damages turned out to be £7m not £700m, do LIT still get (maybe) $50m? Surely not. But in what way is it capped - what if the payout is $50m?

And by "success", does that mean court success (when damages are awarded) or when damages are paid, if they ever are? If Poland drags it out years, there's the 30% interest rate I guess - but no cashflow.

[eswr2000] 29/11/2022 16:26

re GRX and the claim for £737m. Completely wrong that LIT may get one third of any award. If you read the Prairie Mining RNS (30 Jun 20202) when they announced that they had the backing of LIT they made it clear that a) the LIT funding was for a max of US$12.3m; and b) the max return they get is "In return for providing the financing facility, LCM shall be entitled to receive repayment of any funds drawn plus an amount equal to between two and five times the total of any funds drawn from the funding facility during the first five years, depending on the time frame over which funds have remained drawn, and then a 30% interest rate after the fifth year until receipt of damages payments."

Assuming the claim runs into the 4th year from LIT funding being committed then they would get ON SUCCESS only 4 x the sum advanced to support the claim (up to US$12.3m). So perhaps $50m but remember the Arbitration hearing has been heard but there is NO DECISION yet and that could take another 6 to 9 months

[williamcooper104] 29/11/2022 15:21

The KPMG one seems pretty simple - Carallion was obviously insolvent when it paid dividends Without a going concern/balance sheet sign of the final year dividends wouldn't have been paid

[williamcooper104] 29/11/2022 15:19

Thanks for posting that Re-opened a long term position and got a little trade out of it to Had previously got bored holding

[someuwin] 29/11/2022 15:10

Also, LIT funding Collective Claim Against Govia Thameslink Railway / Go-Ahead Group for Overcharging Rail Passengers. Millions of passenger journeys over 6 years will be another huge payout if won.

[spectoacc] 29/11/2022 14:37

Fair point @someuwin, tho timescale for conclusions/cash?

I fancy that KPMG claim to succeed - not sure about the Amazon or Google ones.

Nice to see a bit of buying today, & to have got in ahead of it.

[someuwin] 29/11/2022 14:28

Among LIT's many other ongoing cases are...

* Funding a £1.3bn claim against KPMG over its role as auditor to collapsed contractor Carillion.

* Funding a £900 million class action against Amazon

* Plus a class action against Google's Deepmind for misuse of private health data. This is on behalf of 1.6m individuals. (If each claimant was awarded just £1000. That would be a £1.6bn win)

No wonder the Chairman keeps buying.

[babbler] 29/11/2022 14:17

No it hasn't been decided. But for GRX even its a third of that it's still at least a bagger there from here.

[williamcooper104] 29/11/2022 14:13

Better chance than Burford with Argentina

[someuwin] 29/11/2022 14:11

"LCM will agree to bear all of a claimant’s legal costs, which can include solicitor’s fees, barrister’s fees, charges of independent experts and court fees. LCM will also provide a secured indemnity to cover any adverse cost exposure against the claimant in the event of an unsuccessful claim.
In return, LCM will receive a percentage of the recovered amounts plus repayment of all costs. The percentage LCM receives will vary from between 15% and 40% depending on the level of financing provided."

[everready1] 29/11/2022 14:06

what's the chance of them paying up?