Thursday 02 June 2016 by Company updates

IMF announces major win on Rivercity class action


IMF has announced a major conditional settlement relating to the Rivercity class action


IMF Bentham (‘IMF’) has announced a major win, with conditional settlement achieved on the Rivercity class action. The settlement relates to a claim against Aecom Australia Pty Limited and is subject to preconditions, including court approval.

The settlement is valued at A$121m in total, inclusive of costs. If all the preconditions are satisfied, IMF currently expects to generate revenue of about A$40m and a profit after capitalised overheads (but before tax) of A$29m. It is likely the revenue will be recognised in FY17 and the proportion of revenue to claim size (33%) is strong. A link to the announcement is available here.External link - opens in a new window

The IMF Bentham June 2020 bond is currently available at an indicative yield to maturity of around 6.90%. The previously announced S&P matter and now the Rivercity class action provide line of sight for solid profitability to be achieved in FY16 and FY17.

Please contact your FIIG representative for further details on the IMF Bentham bonds. Available to wholesale investors only with a minimum face value of AUD10,000. Pricing is indicative only as at 1 June 2016.