We should all be hoping that BTL would cover most of the...

We should all be hoping that BTL would cover most of the acquisition costs not BRL.

The potential saving from a win on appeal is significant - and mgmt are obliged to lodge an appeal if only to protect a position at a negotiating table.

The argument of course comes down to the probability of a win - and that is the unknown. The 20% used in your formula seems rather high to me, on the otherhand the $40m you also use is too low. I'd change it to $55m.

L&M will be wanting at least 8% interest on the $40m judged as owed. 8%-10% is consistent with BRLs convertible notes and previous borrowing terms. Compound at two years is $6.6m.

BRL have also been ordered to pay costs. If we assume L&M have invested $3-$5m in legal fees, another $1m for an appeal would take their costs to $4-$6m.

If BRL win and are able to claim costs then they'd also save their own legal costs to date, plus appeal costs - for argument lets say $4m ($1m FY 16/17, $2m FY 17/18, $1m appeal)

I calculate BRL as owing close to $51m. A win on appeal would wipe that, and perhaps allow BRL to recoup $4m.

... and I dont believe that $2.1m is anywhere near a 'rounding error' btw.