Class Action against IXR Liquidator

I have spoken to one of the major litigation funders today. The liquidator has some very high stakes to consider.

The timing of the claim - right near the end of the liquidation process, and almost immediately after a major, fully underwritten capital raising was finalised - and the strange structure of the claim - joining IMX but excluding other fundamentally key parties such as the actual owner of Termite, Outback Iron P/L, and the other joint owner of Outback, SichuanTaifeng, suggests that the claim may have been motivated by a desire to damage IMX - which it obviously already has.

Should the liquidator sustain this damage by continuing to pursue the claim through the remainder of 2015 and into 2016, it may jeopardise the ability of IMX to develop the Chilalo graphite project. Should the claim against IMX ultimately be proven to have had no basis, the liquidator will have blood on their hands, measured in damages to IMX potentially larger than their original $46m / $75m claim against IMX.

This would form the basis of a class action against the liquidator on behalf of IMX shareholders.