Litigation Capital Management (AIM:LIT) shares fell 8.89% to 3.79p after the company said it expects to record material write-downs following adverse developments in two of its case investments.
It said lender Northleaf has extended a debt covenant waiver to 30 June, with the loan's interest rate increased by 2.00% per annum and no additional one-time waiver fee.
The matters are under review, and the write-downs are expected to be recognised in the company's next set of financial statements, the company said.
It added that lender Northleaf has extended a debt covenant waiver that was due to expire on 30 May to 30 June, with the loan's interest rate remaining increased by 2.00% per annum and no additional one-time waiver fee. The waiver extension reflects Northleaf's ongoing support while LCM progresses a Strategic Review, first announced on 15 September.
Management said it will provide an update on the progress of the Strategic Review in due course.
