new BOD still go after CR government for some money
Infinito Gold arranges litigation financing deal
2016-01-15 13:08 ET - News Release
Mr. Erich Rauguth reports
INFINITO REPORTS CLOSING OF ARBITRATION FINANCING AND INTERCREDITOR AGREEMENT
Infinito Gold Ltd. has entered into a litigation financing agreement, effective Dec. 21, 2015.
Under the terms of the litigation financing agreement, the financer has agreed to provide non-recourse financing to Infinito in connection with the legal costs of Infinito's arbitration claim against the Republic of Costa Rica before the International Centre for the Settlement of Investment Disputes and certain other expenses. The commencement of the arbitration was disclosed in Infinito's press release of Feb. 10, 2014.
Under the terms of the litigation financing agreement, Infinito has given certain warranties and covenants to the financer. In consideration of the financer financing the arbitration, Infinito has agreed to pay to the financer a portion of any final settlement of the arbitration claim against the respondent. The financing premium is dependent upon the amount of funds paid in respect of the arbitration and amount of damages recovered. The litigation financing agreement also provides that the amount of the financing premium shall not, under any circumstances, exceed the amount of the total proceeds of the arbitration.
As a further condition to the litigation financing agreement, Infinito has also entered into an intercreditor agreement, effective Dec. 21, 2015, among the financer, Infinito and Infinito's secured creditors. The intercreditor agreement provides for a creditor standstill period under which the creditors have agreed not to exercise any rights and remedies to enforce payment of Infinito's debt pending the outcome of the arbitration or certain other events.
On Dec. 23, 2015, Infinito filed its memorial on the merits with the arbitral tribunal constituted pursuant to the arbitration rules of the International Centre for Settlement of Investment Disputes. In its memorial on the merits, Infinito claims from the Republic of Costa Rica damages in connection with the expropriation, unfair treatment, and other treatment of its investments in Costa Rica in breach of Costa Rica's obligations under the agreement between the government of Canada and the government of the Republic of Costa Rica for the promotion and protection of investments.