Preliminary FY2022 Accounts and Management Changes
LawFinance Limited has released its preliminary 2022 full year accounts, revealing that, among other things, in September 2022, the company breached the liquidity covenant under its Partners for Growth asset backed funding facility, the LawFinance Group made a loss after tax of $31,077,000 for the 2022 year (2021: $21,229,000), had a net asset deficiency of c.US$35 million as at 31 December 2022. The LawFinance Group’s one remaining corporate debt facility as at 31 December 2022 is the Syndicated Acquisition Facility which had outstanding principal of US$18,308,000 (A$26,903,000), and ongoing support from financial creditors (including further funding) beyond the end of March 2023 is uncertain. The company also announced the resignation of Group CEO Daniel Kleijn and non-executive director David Wattel. Phil Smith will continue his roles as Group CFO and company Secretary while assuming Daniel’s CEO responsibilities so far as they relate to the parent entity and its Australian incorporated subsidiaries. The directors of the company have agreed not to receive director Fees from 1 March 2023 until further notice to conserve cash resources.