An undersea exploration company backed by a top hedge fund boss in the United Kingdom lost a major legal fight over the salvage of $40 million worth of silver bars from the wreck of a ship lost to a Japanese submarine in World War II.
On Wednesday, Bloomberg reported that the UK's Supreme Court ruled that the South African government could declare state immunity in a suit by hedge fund chief Paul Marshall's Argentum Exploration Ltd.
Argentum Exploration argued in court that it was owed a 'substantial salvage fee' and wanted a court to 'fix an award.' However, the judges were informed that the two sides had agreed to a settlement.
Here's more from Bloomberg:
The South African government had argued that that it not only still owns the silver, but insisted that it shouldn't have to submit to the lawsuit at all.
The Supreme Court judges agreed, saying that the silver was a non-commercial cargo and the government was entitled to immunity.
The ruling overturned two prior court decisions, with a judge previously saying that the government had probably "forgotten" about the bullion. UK Companies House filings record that Marshall controls Argentum.
In 1942, the SS Tilawa was sailing from Mumbai on its way to Durban, South Africa, when two torpedoes from an Imperial Japanese Navy submarine sunk the passenger-cargo ship. On board were 2,364 bars of silver destined for the South African Mint. For seven decades, the ship resided more than two and a half kilometers below the surface of the Indian Ocean until Marshall's exploration company discovered it.
In markets, the Bloomberg Precious Metal Subindex shows a multi-decade 'cup and handle' bullish formation.
We wonder if the settlement involved physical silver bars... Some analysts expect a "powerful silver bull market" ahead.
