Ascent Resources planning to fund Slovenia dispute on contingency
Ascent Resources updated the market on the funding of its dispute with Slovenia on Thursday, reporting that it was advancing towards the launch of international arbitration proceedings against the country under the Energy Charter Treaty and the UK-Slovenia Bilateral Investment Treaty.
The AIM-traded firm said it had signed non-binding heads of terms with Enyo Law, a specialist arbitration and litigation legal firm, under which it intended to instruct the firm to pursue its claims on a fully contingent basis through a damages-based agreement.
On completion of definitive documentation, the firm would only be paid out of the proceeds of the arbitration in the event of a successful damages award or execution of a binding settlement agreement, if achieved sooner.
“This non-equity dilutive, non-recourse and full funding proposal is the preferred solution from the company's perspective, notwithstanding that the company has other alternative offers also under discussion,” the Ascent board said in its statement.
At 1606 BST, shares in Ascent Resources were down 2.08% at 5.2p.