Prime Liquidator Loses Lend Lease Suit
We invite unitholders to read the attached article by Mr Nick Lenaghan in today's Australian Financial Review.
As reported in the article, the Court has ruled against the Liquidator's plan to pursue legal action against Lend Lease Primelife (LLP). This action was proposed to be funded by interests associated with Mr Lewski, who would have stood to receive a large success fee (potentially as large as $50m) had the case been successful and the full amount of damages awarded. From the very beginning, we had campaigned strongly against the Liquidator's proposal and we are therefore pleased with this part of the ruling by Justice Ferguson.
The article also reports that the Liquidator's proposed claim against LLP has been found to be part of the "property" secured by the charge of Capital Finance, who were said to be unlikely to proceed with the contemplated action. We continue to maintain that there is a course of action against LLP (a very different action to that proposed by the Liquidator) and are considering the alternatives available to unitholders. We continue to maintain that LLP does not have proper title to the management rights and that these rights must be immediately returned to the Trust. We will update unitholders further in due course.
Furthermore, the article reports that KordaMentha, the Receivers for Capital Finance, now have control of the $50m Listing Fee Claim. As unitholders will recall, this is a claim that has been identified and developed by the Prime Trust Action Group. We understand that this matter is due to return to Court on 13 April 2012 and will have further to say about this matter at the appropriate time.