Funder lays claims to Broadsheet’s $29m Pakistan award

LONDON: The Broadsheet LLC is facing a legal claim for almost the full amount of around $29 million award from the Pakistan government from a Cayman Island hedge fund that provided funds to Broadsheet’s lawyers to finance arbitration proceedings against Pakistan in London High Court’s Financial Division and a court in the Isle of Man has prevented the Broadsheet liquidator from distributing monies to Broadsheet’s creditors unless a decision is made on the application by the funder, according to court papers reviewed by The News and Geo.

This reporter has seen papers which show that VR Global Partners has filed a case in Isle of Man and a petition at the US District Court for the District of Columbia against Broadsheet’s UK and US lawyers at Crowell & Moring seeking attendance in court of Washington DC-based Crowell partner Stuart Newberger to answer issues related to the disbursement of nearly $29 million that Pakistan paid to Broadsheet in awards proceeds.

VR has claimed in its US filing that it gave Broadsheet $6 million in 2017 through a legal contract in exchange for a “priority lien” over the proceeds of the arbitration against Pakistan. According to VR’s claim, it is entitled to $27.8 million – almost the entire award amount that Pakistan paid to Broadsheet.