Shares in Litigation Capital Management Ltd (AIM:LIT), the dispute financing specialist, fell 13% to 3.6p in early trading after the company extended a debt covenant waiver, flagged material write-downs on two case investments, and disclosed its strategic review remains unresolved.
The company said lender Northleaf had extended a covenant waiver, originally due to expire on 30 May, to 30 June 2026, with the penalty interest rate of 2% above the standard loan rate remaining in place during the extended period.
LCM also warned it had received negative developments on two case investments with combined invested capital of approximately A$9m, and that it expects to recognise material write-downs on both positions in its next financial statements.
The covenant waiver was first granted as LCM undertook a strategic review announced in September 2025, which the company said continues to progress.
The board said the waiver extension reflected Northleaf's ongoing support while LCM works towards a long-term resolution of its capital position, and promised a further update on the strategic review in due course.
In the past 12 months, the stock has fallen 92% following several high-profile courtroom losses exacerbated by funding worries.