Litigation Capital Management Ltd Comet Group liquidation claim (7481C)
June 23 2021 - 1:00AM
UK Regulatory
TIDMLIT
RNS Number : 7481C
Litigation Capital Management Ltd
23 June 2021
23 June 2021
Litigation Capital Management Limited
("LCM" or the "Company")
New Litigation Finance Agreement to fund Comet Group liquidation
claim
Litigation Capital Management Limited (AIM:LIT), an alternative
asset manager specialising in dispute financing solutions
internationally, has entered into an agreement to provide a
litigation finance facility to Geoffrey Carton-Kelly, a partner of
FRP Advisory ("FRP"), additional liquidator of CGL Realisations Ltd
(In Liquidation), which until 21 October 2019 was known as Comet
Group Ltd ("Comet"). The litigation finance agreement will cover
proceedings issued in the High Court against Darty Holdings SAS
("Darty") ("the Proceedings"). Mr Carton-Kelly was appointed as
additional liquidator by the court to specifically investigate and
pursue potential claims.
At the time of its insolvency, Comet was the UK's second largest
electrical retailer with 239 stores and 6,900 employees.
Darty is a subsidiary of FNAC Darty, a multinational electrical
retailer based in France, and listed on the Paris Stock Exchange
(under ticker FNAC.PA).
The additional liquidator alleges in the Proceedings that a
transaction that occurred prior to Comet entering into
administration had the effect of a preference in Darty's favour,
thus reducing the amounts that would otherwise have been available
for Comet's creditors. The proceedings seek recovery of amounts
exceeding GBP83m to be returned to Comet for distribution to
creditors.
An important preliminary issue in this case is whether Comet was
"connected" to Darty at the time of the alleged preference. This
issue has been determined in favour of the additional liquidator at
first instance and on appeal.
Patrick Moloney, CEO of LCM, commented: "LCM has been financing
claims of this nature since its inception 23 years ago. We are very
comfortable funding into the insolvency and restructuring sector.
Over time, we expect to see increased applications from this part
of the market."
Nick Rowles-Davies, Executive Vice Chairman of LCM, commented: "
With liquidations of this scale, LCM is leading the way as the
funder of choice amongst leading insolvency practitioners such as
FRP. We are witnessing significant demand for disputes financing in
insolvency matters and we expect this to continue as the awareness
of its key benefits continue to be recognised."
Enquiries
Litigation Capital Management c/o Alma PR
Patrick Moloney, Chief Executive
Officer
Canaccord (Nomad and Joint Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Investec Bank plc (Joint Broker) Tel: 020 7597 5970
David Anderson
Alma PR Tel: 020 3405 0205
Justine James LCM@almapr.co.uk
Susie Hudson
Kieran Breheny
Molly Gretton
NOTES TO EDITORS
Litigation Capital Management (LCM) is a leading international
provider of litigation financing solutions. This includes
single-case and portfolios across; class actions, commercial
claims, claims arising out of insolvency and international
arbitration. LCM has an unparalleled track record, driven by
effective project selection, active project management and robust
risk management.
Headquartered in Sydney, with offices in London, Singapore,
Brisbane and Melbourne, LCM listed on AIM in December 2018, trading
under the ticker LIT.
www.lcmfinance.com
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