Penalty of £ 50 m less at least 20% discount if settled. The penalty cannot be recovered by Link from any insurance cover. But with the £306 m restitution, LNK can claim on insurance. Insurance people do not allow the insured to disclose information regarding insurance cover.
Just speculating on how the full $520 m could
be raised. Sell the LFS business for
$250m-$300m and insurance comes up with $200-$250m.
Penalty can negotiated down to £20m.
If no settlement, FCA and Woodford compensation fund won’t get much for a long time and a lot less. And FCA would have to sue the insurance companies.
Hope LNK insurance cover is more than $300m.
I think there is a good chance of a settlement as everyone loses if there is none.
