Burford awarded $140m at arbitration hearing
Burford Capital, the litigation funding group, announced that a "favourable decision" had been reached in an arbitration matter regarding one of its investments on Friday, though it might not receive any or all of the amount.
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An arbitration tribunal ruled in favour of a Burford-backed claim by Teinver SA, claiming that Argentina had allegedly taken control illegally of two of its airlines back in 2008.
According to the ruling, Argentina is required to pay $324m in damages, plus pre- and post-award interest yet to be calculated.
Burford's entitlement in the settlement is estimated to be in the range of $140m, more than 10 times the approximate $13m investment the company spent on settling the matter.
While the outcome was positive for the firm, it also noted that the ruling does not necessarily mean the amount will be paid in full, or in fact, at all.
Burford said in a press release on Monday morning that "the entire decision could later be overturned by an adjudicatory body with higher authority and result in a loss for Burford. Moreover, it is commonplace for there to be negotiations, settlement discussions and discounting."