Market for Awards - WAMR 2014 Vol. 8, No. 4
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Originally From World Arbitration and Mediation Review (WAMR)
Good afternoon. I have the honor to coordinate and moderate
this panel. As you will notice, my role will be very limited to
present our panelists and assist in driving the discussion. The
topic is “Market for Awards,” and we have three terrific
commentators for this panel today. The first one is Mick Smith.
Mick is mathematician and studied law in Cambridge University.
Mick qualified as a solicitor in 1996. Secondly, he worked in
finance in variety of investment banking roles. Mick is the author
of various recent publications including the chapter “Mechanics of
Third-Party Funding Agreements: A Funder’s Perspective”
published in the book Third-Party Funding in International
Arbitration. Mick, you have the floor.
MICK SMITH: Thank you, Alvaro. My little job here in the
time available is to tell you about who buys or finances arbitral
awards? How do they do it? And at what price might they do?
Those of you who have had the pleasure of listening to me before
will know that I never resist a temptation to throw a few numbers
at a legal audience. I am afraid today is no exception to that rule.
So there are some numbers in this presentation. But, before we
get to that, who buys awards? I have divided then into three
different types. First, the market, there are people like Calunius,
like businesses like La Francaise that are, in reality, third-party
funding businesses. I will explain a bit more about what that
means later. But we are also interested in the market for awards.
Second, are people like distressed investors, such as Elliott and
companies like Gramercy, which are pretty well known, especially
Gramercy, for having purchased several of the Argentinian
awards which they went on to settle. Third and last category is
businesses that have grown around just enforcement of trade
debt and claim debts, and there are businesses such as Omni
Bridgeway that one or two of you may already have heard about.
That is a kind of quick snapshot of who buys awards.