As part of its dispute with the Moroccan government, the British Emmerson PLC indicates that it has obtained financing of around $11 million from a litigation financing company.
This financial envelope will be used to advance the dispute between the stakeholders.
The secured funding helped Emmerson Plc shares jump 29% on Thursday.
This funding is intended both to advance the company’s ongoing litigation with the Moroccan government and for general working capital purposes.
The dispute concerns a bilateral investment treaty between the United Kingdom (TADAWUL: 4280) and Morocco, which aims to protect investments between the two nations.
Emmerson intends to use the funding obtained to support possible arbitration proceedings under this treaty, the resolution of which could take months.
The company said the deal was reached much faster than expected, within two months of the litigation starting, while such processes typically take six to nine months.
If the arbitration results in a successful outcome or settlement, the litigation finance company will receive a return based on either a multiple of the amount collected or a percentage of the settlement or award.
Morocco
