Renco Group / Inversiones.

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Last February 15th, 2015, in a fraudulent conveyance of assets case filed by MagCorp before the Manhattan District Court, a jury ruled against Renco Grouo and his controlling shareholder Ira Rennert, and awarded MagCorp US$ 213 million as compensation. The case is currently on appeal.

MagCorp, an American company specialized in magnesium production accused the defendants of siphoning money from MagCorp when it faced massive environmental claims that pushed the company to bankruptcy. The money was allegedly used to build Ira Rennert´s mansion in the Hamptons, New York.

Gerchen Keller, a US Litigation Funder, has invested US$ 26.2 million to buy part of the economic rights of the case in order to provide liquidity to MagCorp. If the verdict is affirmed on appeal Gerchen Keller will be entitled to US$ 50 million. But if the verdict is overturned, Gerchen Keller will receive nothing.

Similar to the structure provided by Gerchen Keller. LexFinance´s Arbitration Award Acquisition (see more here) allows any party to sell to LexFinance all or part of the economic rights of an arbitration award, transferring the execution or collection risk of such award to LexFinance

On the other hand, last July 15, 2016 a tribunal of the International Centre for Settlement of Investment Disputes (ICSID) dismissed a US$ 800 million investment arbitration claim filed by Renco Group against the Peru for the closure of “La Oroya” metallurgical facility.

In this case, the court issued a partial award in favor to Peru where unanimously rejected Renco claim for lack of jurisdiction.

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