1 August 2023
Manolete Partners Plc
("Manolete" or the "Company")
Update regarding: PACCAR Inc & Ors v Competition Appeal Tribunal & Ors, [2023] UKSC 28 ("the PACCAR Matter")
Manolete Partners plc (AIM:MANO), the leading quoted UK insolvency litigation financing company, is pleased to provide the following commentary regarding the above matter.
The Company has always stated that the key difference in Manolete's business model is that it overwhelmingly purchases, rather than funds, its case investments. This is because the Insolvency Act 1986 uniquely allows a Liquidator and Administrator ("Office Holder") to sell an insolvent company's legal claims to third parties, for the benefit of creditors. These powers were further extended by the Small Business Enterprise and Employment Act 2015, which allow the Liquidator and Administrator to sell the claims that arise in their capacity as an Office Holder of the insolvent company to a third party.
The PACCAR Matter is a Supreme Court ruling that relates to a number of funded claims in relation to Truck Cartel price fixing being heard in the UK's Competition Appeal Tribunal. Manolete also has a number of claims in relation to the same matter. All of Manolete's claims have been purchased by Manolete. None are funded. The Supreme Court ruling therefore has no relevance to Manolete's claims in this matter.
Looking at Manolete's total current portfolio of UK insolvency claims: as at the end of June 2023, the Company had 390 live cases with a combined Net Book Value of £31.5m. 94% by volume and 95% by Net Book Value related to Purchased cases; 6% by volume and 5% by Net Book Value related to Funded cases.
Of the 23 (out of a total of 390 live cases) that are Funded cases, Manolete is working with specialist counsel to determine any amendments that may be required to the terms of Manolete's standard funding agreement.
Over 95% of Manolete's successfully completed cases are completed by way of a consensual settlement agreement with the defendant (often an individual previous company director). Very few end at a trial. The Board considers that the prospect of any party seeking to re-open a previously completed Funded Case as highly remote.
If any further material matters arise from our work with specialist counsel in this area, we will provide a further update.
For further information, please contact:
| Manolete Partners Plc Steven Cooklin (Chief Executive Officer)
| via Instinctif Partners |
| Peel Hunt (NOMAD and Broker) Paul Shackleton
| +44 (0)20 7418 8900
|
| Instinctif Partners (Financial PR) Tim Linacre Victoria Hayns
| +44 7949 939237 |
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