Litigation Capital Management Limited (LON:LIT) said it agreed a litigation finance deal with the liquidator of the electrical retailer Comet, who is pursuing a UK High Court case against its former owner, the French group Darty Holdings.
Geoffrey Carton-Kelly, a partner of FRP Advisory, brought the action following the collapse of Comet in 2012 with the loss of 6,900 jobs.
He 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”.
Carton-Kelly is attempting to recover “amounts exceeding” £83mln that would be returned to Comet for distribution to creditors.
Patrick Moloney, chief executive of Litigation Capital, said: "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."