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Experience

IEF has a wealth of financial and economic experience across a range of industries and both contentious and non-contentious contexts.  Our broad experience and deep understanding of finance and economic theory give us the ability to explain technical concepts successfully to a non-technical audience.

In a recent English High Court case, Mr Justice Burton found “the expert evidence of Mr Giles was in my judgment entirely persuasive” and concluded that he “preferred the expert opinion of Mr Giles on all matters”.

Case Studies

Saltri III Ltd v MD Mezzanina SA (and others)

In the course of a dispute heard at the English High Courts  — Saltri III Ltd v MD Mezzanina SA (and others) — Tim Giles gave evidence on the value of the Stabilus business prior to its restructuring in 2010.

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Symrise AG (ANOR) – and – Baker & McKenzie (A Firm)(ANOR)

Tim Giles gave evidence on losses arising from tax liabilities resulting from allegedly negligent advice. The question was complicated by a multi-level corporate structure across Europe and Mexico.

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IEF Case Experience

Investment Treaty Arbitration:

  • Appointed to provide expert valuation reports and testimony in an investment treaty arbitration claim that involved an oil field in a former Soviet Republic. Major issues on which we provided expertise included country risk and oil price forecasting.
  • Valuation of losses borne by a foreign investor as a result of expropriation of a gold and silica concession in Ghana.
  • Appointed by the respondent as a valuation expert to examine the level of investment and potential value of an aluminium sector investment in the course of a bilateral investment treaty arbitration involving the government of Azerbaijan. Assessed both the claimant’s damages conclusion and submitted evidence in regard to the respondent’s counterclaim.
  • Wrote expert reports and gave testimony in a bilateral investment treaty claim against a Central European State (Saluka Investments B.V. vs. The Czech Republic) and the parallel UNCITRAL counter claim (NPF v Nomura Securities). Advised on the relationship between discriminatory state support given to the major competitors of an unsupported bank and a highly damaging run on deposits at the unsupported bank.
  • Appointed to rebut damages valuation evidence put forward by the Claimant’s quantum expert in the course of a bilateral investment treaty case against the Republic of Lithuania (Parkering v Lithuania).

Commercial Arbitration:

  • Appointed as a valuation expert by the claimants in a commercial arbitration. Prepared two expert reports and gave testimony on the losses borne by the claimants as a result of the failure of a luxury goods joint venture.
  • Expert testimony on the valuation of losses borne by a foreign investor as a result of expropriation of a mineral-sands mine in The Gambia.
  • Damages testimony in the course of an Arbitration dispute that involved allegedly fraudulent misrepresentation by the vendor of an investment in Spain. Presented evidence on the observed impact on the valuation of company shares when announcements of similar events had been made.
  • Appointed as an expert and provided evidence concerning economic harm to Argentine investments in support of a political risks claim brought against Lloyd’s of London.

Energy sector arbitration:

  • Upstream oil – Appointed to provide expert valuation reports and testimony in an international treaty arbitration claim that involved an oil field in one of the former Soviet Union Republics. Valued the option to delay exploration. Major issues included country risk and oil price forecasting.
  • Midstream gas – Profitability assessment of a large gas supply contract between two European gas suppliers.
  • Downstream gas – Prepared expert reports in regard to the valuation of losses allegedly borne by a foreign investor in a Caribbean Gas to Liquids (GTL) plant as the valuation expert appointed by the respondent. Addressed complex issues in regard to: adjusting for project feasibility risks, option pricing, Monte Carlo techniques and discount rates.
  • Downstream gas – Appointed as a valuation expert for the claimant in an international treaty arbitration against the Bolivarian Republic of Venezuela. Valuation of losses borne by the claimant as a result of expropriation of gas-to-urea plant and offtake agreement.
  • Midstream gas – Appointed by state and state-owned enterprises in a series of four contract and investor-state arbitrations that involve disputes over a terminated gas supply agreement between two Middle Eastern countries. Reports and expert evidence has been completed on three of these arbitrations, while the fourth is on-going.
  • Upstream and downstream coal – Appointed to value the opportunity to develop a coal mine and a Coal to Liquids (CTL) plant in Western Australia using real options and applying a variant of the Monte Carlo technique.
  • Downstream gas – Analysis of financial data to determine the cost of the residual element of a disputed contract covering engineering design work for a LNG plant in the Middle East.
  • Electricity production and gas transportation – Financial analysis of the impact of regulatory regime changes on the profitability and value of gas-fired electricity generators and a gas transmission concession in Argentina.
  • Electricity transmission – Financial analysis of the impact of tariff regime changes on the profitability and value of an electricity transmission concession in Argentina. Particular emphasis on the regulated asset value.
  • Upstream oil – Expert reports on the valuation of an oil exploration and production company in light of allegations that a failed merger in the oil industry harmed the merging parties.
  • Gas distribution – Financial assessment of a gas distribution concession in Argentina. Particular emphasis on volumes, ability to pay (given increases in consumer prices), the impact of customer arrears and the appropriate margin.
  • Gas transportation – Financial assessment of a gas transportation concession in Argentina. Particular emphasis on volumes (given large swings in consumer prices), the impact of take-or-pay contracts and the appropriate margin.
  • Electricity production and distribution – Advice to a Middle Eastern state electricity monopoly on the appropriate cost of capital for electricity pricing.
  • Upstream oil – Financial analysis and due diligence of a critical supplier for an oil major. The supplier was one of a small number of potential suppliers for a critical service required by the oil major. The supplier’s balance sheet was relatively weak. As such, assessed the relative risk of extending new contracts to the supplier versus not doing so.
  • Corporate governance – Consulting with a state-owned oil company on corporate governance of its insurance operations.
  • Gas transportation, storage and distribution – Advised a California energy firm on allegations about manipulation of the gas market.

Market analysis

  • We researched and analysed the value of investors’ portfolios under alternative scenarios in UK, US and Russian markets. For example, we examined the expected value of a Russian oil company under a number of scenarios by reference to market movements in similar companies.
  • Provided analysis and advice on an SEC investigation on the structuring and asset selection of a failed CDO.
  • We examined the valuation issues surrounding the unwinding of a repo transaction backed by bonds and CDOs.
  • We developed new potential fund design rules and supporting evidence to a UK fund manager. Used a Monte Carlo analysis (with boot strapping) to estimate the risk of a chosen investment strategy.
  • We undertook the revaluation of a large securitised debt offering, where the original valuation had been tainted by modelling errors. We assessed the impact on the value of the senior debt of the original modelling errors and used a Monte Carlo analysis to estimate the riskiness of the senior debt relative to other tranches.
  • In the course of an international arbitration we assessed the ability to raise finance for a property investment during the financial crisis.

Market manipulation and abuse

  • We provided preliminary assessment of large highly leveraged derivative investments over an Irish bank that was later nationalised. Provided counsel with advice on claims of market manipulation.
  • We assessed of the impact of alleged false accounting on the market value of a UK listed company.
  • We advised a California energy firm on allegations about market manipulation in the natural gas market.
  • We analysed the economic impact on the stock market of false and delayed earnings announcements by directors of London-listed software company, AIT Group.

Competition and State Aid

  • At the height of the financial crisis we advised the UK Government and the European Commission on the reasons for the failure of the UK banks Northern Rock and Bradford & Bingley, the competition implications of their rescue and restructuring, and the valuation of the State Aid provided.
  • We gave advice and co-authored reports for the UK Government, the Irish Government and European Commission on the seriousness of the banking crisis in the UK and Ireland and the need for the measures to resolve the crisis using the exceptional provisions of the European Treaty (Article 107(3)(b)).
  • We examined the impact of discriminatory subsidies on competition in the Czech banking market.
  • We assisted the European Commission’s independent trustee in the monitoring of a major European banking group following the bailout by several European governments.
  • Evaluated the impact on competition of state guarantees over the pension liabilities of a formerly government-owned telecoms operator.
  • Advised the European Commission on the State Aid aspects of the pension liabilities of a privatised telecoms operator undergoing restructuring.
  • We evaluated the State Aid given to a publicly owned European broadcaster.
  • We assessed the financial position of a company facing a large fine from European Commission. Provided advice on the scale of any potential fine the company could absorb and remain competitive.

Potential price regulation

  • Analysed the profitability of current accounts for a major UK bank in the context of accusations of excessive pricing
  • We analysed the profitability of credit card charges for a major UK bank
  • We analysed the profitability of services to SME customers for two major UK banks

Financial Analysis and Forensic Accounting

  • Analysis of the profitability of a gas contract. This involved the investigation of accounting data covering direct revenues and costs and indirect costs.
  • Tracking the value of a property development project attributable to an individual entity through a set of complex equity structures and loan agreements.
  • Analysis of financial data to determine the cost of the residual element of a disputed contract covering engineering design work for a LNG plant in the Middle East.
  • Financial investigation of the level of investment in a metals mining and refinery asset in Central Asia and the profitability of the investment under various scenarios.
  • Review of the financial and accounting metrics of a French and Belgian bank in receipt of State Aid. Analysed the bank’s financial and accounting data to verify that the bank was meeting the required targets for the European Commission.
  • Assessed the accounting impact of fraudulent structured financial transactions of large bankrupt energy-trading firm including quantifying increase in losses, changes in outstanding debt, and effect on key accounting ratios. The analysis was used in litigation brought by the company’s debt holders.
  • Assessed the financial position of a company facing a large fine from a competition regulator. Provided advice on the scale of any potential fine the company could absorb and remain competitive.
  • Analysing the profitability of bank products and customers for a number of banks in commercial and regulatory contexts.
  • Financial analysis and due diligence of a critical supplier for an oil major. The supplier was one of a small number of potential suppliers for a critical service required by the oil major. The supplier’s balance sheet was relatively weak. As such, assessed the relative risk of extending new contracts to the supplier versus not doing so.
  • Investigation of alleged manipulation of profits and fraud by a joint venture partner for the purpose of falsely inflating purchase consideration due pursuant to the exercise of a put option. Assessed the validity of, and the propriety of the accounting treatment of, certain transactions recorded in the financial statements.
  • Advising a client in relation to alleged fraudulent misrepresentation by its joint venture partner, involving a detailed review and analysis of contemporaneous correspondence, management accounting information and financial statements relating to the operations of the venture.
  • Assessment of a company’s recorded revenue and the propriety of its revenue recognition policies in light of contemporaneous applicable accounting standards and regulation.
  • Analysis and tracing of several thousand transactions through a large number of bank accounts in order to assess the net losses arising to a client of a retail bank following an alleged misuse of a power of attorney.