The interest amount would surely be less than what a litigation funder’s commission would have been, however I assume the court looks at any contract, and also the reasonableness of the interest. It is the reasonableness which has always concerned me. Why did not Shine borrow the money for the disbursements at market rates (ie 1-3%)? And if the court says that all (or most) of the interest is not recoverable, and Shine have no legitimate reason why they borrowed at credit card rates, then I am sure this issue will be rolled into the next shareholder class action.
SHJ Price at posting:
70.0¢ Sentiment: Hold Disclosure: Held
