Manolete Partners completes on large insolvency claim
Insolvency litigation financing company Manolete Partners announced the successful completion of another of the larger cases in its portfolio of UK insolvency claims on Thursday.
The AIM-traded firm said it had now completed on a further important case, realising £2.8m net cash proceeds, in line with book value and at a money multiple of 23x the total investment costs of £0.12m.
It said the claim was settled for £7.5m, with the defendants due to pay £2.5m by 20 November, another £2.5m by 31 December 2021, and a final £2.5m by 31 December 2022.
Manolete said it was a ‘funded claim’, explaining that it would receive its full costs back as a first priority share of around £0.12m, and then 50% of the next £1m of proceeds received, 45% of the following £1m, 40% of the next £1m, and 30% of the remaining proceeds of £4.4m.
The insolvent estate would retain the balance of £4.7m, with the main beneficiary to be Her Majesty’s Revenue and Customs as the largest creditor.
As the matter was “well advanced” at the time its recent interim results for the six months ended 30 September, the board said there was no material difference between the realised gain and the unrealised gain as at 30 September on the matter.
“This is another tremendous result on one of our larger portfolio cases,” said chief executive officer Steven Cooklin.
“The previous large £15m settlement announced in September was highly unusual in terms of a very long 10-year payment plan.
“In this more recent £7.5m completion, we will receive the majority of the £2.5m cash due to be received next week.”
All, or close to all, of the remaining monies due to Manolete should be received by 31 December 2021, Cooklin said, with any small remainder received the following year.
“Again, we are delighted that HMRC will be a large beneficiary of this settlement, and we applaud the excellent work undertaken by the liquidator and his legal team in resolving this matter.”
At 1207 GMT, shares in Manolete Partners were down 0.83% at 300p.