Litigation profitable for IMF

Litigation funder IMF has increased income by 76 per cent and net profit by 188 per cent in a year when a string of corporate failures and shareholder disputes led to a considerable expansion of its funding book. IMF yesterday reported net profit of $17.2 million for the year to June, compared to $6 million in 2006/07. Earnings were based on $55.2 million of income from cases. Cases in which IMF shared in proceeds for its litigants included Sons of Gwalia, Eurogold versus Oxus and finance brokers. Matters with outcomes pending over the next 18 months include car parts maker ION, Aristocrat, Downer EDI, AWB and Village Life. The maximum claim value of its portfolio is over $1 billion. Matters that came onto IMF's books during the 2008 financial year include Allco Finance Group, Octaviar, Opes Prime, Centro Properties and Centro Retail. The company launched a European business during the year, Claims Funding International, in a joint venture with Maurice Blackburn. It has committed $10 million of funding over three years to get the business going. IMF chairman Rob Ferguson said in a statement that most of the cases that came onto the books in the past year arose "out of a sudden change in the business outlook which requires, but often does not get, prompt corporate disclosure of the change in outlook."

Source: The Sheet

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