Monday 04 July 2016 by Company updates

IMF receives significant cash boost from Australian cases

IMF’s cash position has received a significant boost from recent major case settlements

IMF Bentham has provided an update in relation to three large Australian cases. A link to the announcement is available here.External link - opens in a new window

  1. Lehman case – IMF has received an additional A$30m payment in relation to the Lehman case, bringing total receipts on the matter to $43.9m. As at 31 December 2015, IMF held a current receivable of $21m and a non current receivable of $15m in relation to the Lehman case, so the timing of the Lehman payment has been earlier than originally anticipated. IMF expects to receive the remaining distribution of $6.9m before the end of the 2016 calendar year.
  2. S&P case – IMF has reported that its return on this case is now $2m better than originally expected. IMF has received $54m in payments and profit after capitalised overheads (but before tax) has also increased by $2m to $49m.
  3. Rivercity case – conditional settlement of this case has been reached but is subject to Federal Court approval which will be heard on 10 August 2016. IMF still expects to generate $40m of revenues and profit after capitalised revenues (but before tax) of $29m.

These case updates affirm the expectation of IMF holding a strong net cash position and delivering solid profitability into FY16 and FY17. Since the bond was launched, IMF has received around $84m in cash payments relating to the S&P and Lehman matters (plus additional income from smaller case wins) versus ~$80m of debt outstanding. IMF expects to receive a further $47m in revenues from the Rivercity and Lehman cases in FY17.

The IMF Bentham 7.40% fixed rate bond maturing in June 2020 is indicatively offered at $102.85 and a yield to worst (in this case to the maturity date of June 2020) of approximately 6.60%.

Please contact your FIIG representative for further details on the IMF Bentham AUD bond. Available to wholesale investors only with a minimum face value of AUD10,000. Pricing is indicative only and subject to change.