05/08/2008 - 16:17

IMF pockets $3m from Shenton Park case

05/08/2008 - 16:17

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Litigation funder IMF (Australia) Ltd will pocket over $3 million after conditional settlement was reached in the Shenton Park Retirement Village matter.

Litigation funder IMF (Australia) Ltd will pocket over $3 million after conditional settlement was reached in the Shenton Park Retirement Village matter.

The company said that it will receive about $3.1 million if conditions in the settlement are satisfied.

IMF has previously said it was acting on behalf of the liquidator of Shenton Park Retirement Village Pty Ltd

"The general terms of the settlement are confidential to the parties. The conditional aspect of the settlement is to be satisfied by 29 August 2008," IMF said today in a statement.

IMF's windall follows an investment by the company of about $600,000 and capitalised costs at $200,000.

On its website, IMF said the case centred on the valuation of $23,3 million for a retirement village based on the construction of 66 units to be sold within 36 months of project start date.

"An expert in managing retirement villages also provided projections for unit sales. Construction was basically completed on time but only one unit was sold before the company was placed into receivership by Bankwest," IMF explaine don its website.

"Losses amount to ~$15M. The claim is for a negligent valuation report relating to the construction of the retirement village."

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