A Litigation Claim Right is a contractual right granted by Sbet Australia Pty Limited, a wholly owned subsidiary of Sportingbet plc, to receive the value of any amount which the Collection Agent, One Managed Investment Funds Limited (a subsidiary of the One Investment Group), is entitled to receive (net of its costs), pursuant to the Litigation Management Deed on a Pro-Rata Basis, during the first five years following the Implementation Date.
On 31 August 2011, each Shareholder, Right holder and Option holder of Centrebet International Limited (Centrebet) was granted the same number of Litigation Claim Rights as the total number of Shares, Performance Rights or Options they held in Centrebet.
For the period ending on the fifth anniversary of Implementation Date, any payments made by Sbet Australia Pty Limited, for the benefit of the Litigation Claim Participants will (subject to the priorities set out in the Payment Waterfall referred to below) be paid to the Collection Agent, pursuant to the Litigation Management Deed, who will hold those funds as agent and bare trustee for the holders of Litigation Claim Rights.
The Collection Agent will then distribute the funds (net of liabilities which have not been paid out of the Costs Account and/or from any Unused Benefits) to holders of Litigation Claim Rights on a Pro-Rata Basis within five days after the later to occur of:
- Sbet Australia Pty Limited (or any other member of the Sportingbet Group) having made any payment to the Collection Agent in accordance with the Litigation Management Deed; and
- Target Claim Committee Members having provided the Collection Agent written instructions or directions requiring the Collection Agent to make payment to the holders of Litigation Claim Rights.
Litigation Claim Rights are able to be transferred unless the Collection Agent has received a written instruction signed by at least one Target Claim Committee Member and one Bidder Claim Committee Member (both acting reasonably and in good faith), directing the Collection Agent to refuse to approve the transfer. In addition, if a holder wishes to transfer their Litigation Claim Rights they must pay or agree to pay, on an indemnity basis (to the Target Claim Committee Members’ satisfaction) the transfer costs (as advised to them) charged by the Collection Agent for such transfer.
Litigation Claim Rights cannot be redeemed.
A summary of the current position of Centrebet’s claim against the Commissioner of Taxation is available at The Litigation Claim page.
The above information should not be regarded as financial, legal, taxation or investment advice. Readers of this information should consult their own advisers in this regard.