Emmerson secures litigation funding for Morocco claim
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CDR | 2 January 2025
Emmerson secures litigation funding for Morocco claim
by Natasha Doris
The company, represented by Boies Schiller Flexner, has secured up to USD 11 million in funding against the North African state.
Emmerson has secured USD 11 million in litigation funding from an undisclosed firm in its legal dispute against the Moroccan government. The Moroccan-focused potash development company confirmed its signing of a Capital Provision Agreement today (2 January).
The dispute centres on the bilateral investment treaty (BIT) between Great Britain and Northern Ireland and Morocco for the Promotion and Protection of Investments, which has been in force since 14 February 2002. The company claims that the Moroccan government is guilty of numerous breaches of the BIT relating to the Khemisset potash project in the country, including its refusal of a significant environmental and social impact permit.
Emmerson announced its intention to file a dispute at the International Centre for Settlement of Investment Disputes (ICSID) against the North African state on 1 November last year. The company also secured legal representation from Boies Schiller Flexner.
The litigation funding agreement will be available in tranches up to the USD 11 million amount, with the funding firm to receive no return if the dispute is unsuccessful. If Emmerson wins, the financer will receive a return based on the greater of a multiple of the final drawn-down amount, or a percentage of the final award.
Emmerson managing director Graham Clarke said in a statement: “The company has undertaken a tremendous amount of work and effort in a short period of time to secure substantial financing from a reliable funding partner. The CPS secures the medium-term future of the company and we can now move forward with BSF as our legal partners to deliver the best possible outcome for the company and its shareholders.” He added: “BSF tend to only take on winning cases and their confidence in the case reinforces our confidence in the outcome.”
