centro cer v imf, page-5

The timing of lodging the Statement of Claim is a calculated attempt on behalf of IMF to:

a. Boost its own publicity at a time when CNP is in the news;
b. Capitalise on the deadlines imposed on CNP by putting added pressure on it;
c. Hope that the scrutiny CNP is under will encourage it to try and dispense with the issue and settle ASAP to avoid further headaches.

It’s an opportunistic move designed to provide publicity for the law firms – their best bet is try to and extract a settlement; the legal players don’t anticipate this will actually proceed to the trial phase. The $100+ million figure is a sensationalist stunt - just look at the lack of legal precedent.

It’s not in their interest to have numerous actions before the courts – settlements are quicker, cheaper and easier. Having said that, this won't help boost investor confidence in CNP in the short-term.