Monetizing a pending claim to reduce borrowing costs

Company challenge

Bolivia had expropriated the facilities of Rurelec, a listed international power generation firm. As the company was pursuing its claim through international arbitration, its credit profile had declined. Neither its expropriated properties nor its pending arbitration claim, however valuable or meritorious, were recognized as assets by traditional lenders. As a result, it faced increased costs to borrow, hindering its growth.

Burford legal finance solution

Burford was able to fashion an innovative solution that met Rurelec’s business needs: Crediting the value of the arbitration claim against Bolivia, Burford provided a fully recourse debt facility at historical market rates, with the debt discount balanced by a contingent interest in the arbitration outcome.

Legal finance impact

Able to borrow at reduced rates, Rurelec was able to invest in its growth even as it pursued—and later won—its arbitration claim.