New York hedge fund Tenor Capital Management is set for a big payout after investing in a gold miner expropriated by Venezuela that’s now first in line for a $1.4 billion settlement.
Tenor helped finance Crystallex International Corp.’s litigation for the past decade in hopes of one day receiving an undisclosed portion of any award the Canadian gold miner won in challenging the late Hugo Chavez’s 2011 decision to revoke its license for one of the world’s largest gold deposits.
Hedge funds, private equity and sovereign wealth funds have been piling billions into the outcome of high stakes court cases while aiming for big payouts. Litigation finance, which sees outside investors pool money into lawsuits in exchange for a portion of any award, is a nascent but growing $13.5 billion industry.
Shah didn’t respond to requests for comment. A representative for Crystallex declined to specify the share of the award currently earmarked for Tenor.Complex international arbitration cases are “definitely on the riskier end,” Luke Darkow, a principal at Chicago-based Victory Park Capital Advisors, said in an interview. “You’re backing a single case outcome, duration is notoriously difficult to underwrite and is almost always extended.
While waiting for the permit, Chavez’s government ordered Crystallex’s contract to be unilaterally terminated and turned it over to the state-owned oil company Petroleos de Venezuela SA, or PDVSA. Lawyers for the mining firm won the $1.2 billion arbitration award in 2016, which has since grown to $1.4 billion with interest.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trains Between New York’s Penn Station, New Jersey Facing DelaysAmtrak and New Jersey Transit trains operating between New York’s Penn Station and New Jersey are experiencing possibly significant delays due to a disabled commuter train.
Read more »
Reports: New York Jets QB Aaron Rodgers has torn Achilles, done for seasonAaron Rodgers' first season with the New York Jets is over after just four snaps. According to multiple reports, an MRI confirmed Tuesday that Rodgers suffered a season-ending Achilles injury in Monday's win over the Buffalo Bills.
Read more »
New York Jets star QB Aaron Rodgers has a torn left Achilles tendon: ReportsAaron Rodgers has a torn left Achilles tendon, according to a person familiar with the diagnosis, and the QB likely will miss the season.
Read more »
New York Loosens Marijuana Licensing to Expand Recreational MarketNew York’s cannabis regulator is expanding its licensing program for recreational marijuana to include more businesses and entrepreneurs.
Read more »
Beer Girl returns, winning chug-off with fan at New York Jets gameThe world\u002Dfamous “Beer Girl” has taken her talents from the tennis courts to the gridiron.
Read more »
TKO Group, which houses WWE and UFC, begins trading on the New York Stock ExchangeShares of TKO Group, the new company that houses WWE and UFC, opened at US$102 per share in their first day of trading on the New York Stock Exchange on Tuesday.
Read more »