Prime Trust Action Group Unitholder Update No. 22 – 31 May 2013

 

 

ASIC Proceedings

 

The Federal Court proceedings initiated by ASIC commenced on 1 May 2013.  In these proceedings, ASIC is seeking disqualification orders and financial penalties in respect of former APCH directors and a declaration that APCH breached its statutory duties.  The defendants to these proceedings are as follows:

 

APCH                        

Dr Michael Wooldridge    

Mr William Lewski    

The proceedings are being conducted in two stages:

 

• Stage 1 – The purpose of this stage is to determine whether the directors breached the Corporations Act 2001 (Act), and the hearings were completed on 27 May 2013.  We currently expect that the decision in relation to this stage will be handed down in August 2013.

 

• Stage 2 - If the Federal Court determines that the directors breached the Act, then Stage 2 will commence, possibly in September 2013.  The purpose of stage 2 is to for the Court to determine whether the directors had any reasonable excuse for their actions and if not, to consider the imposition of penalties.  

 

Investors may be interested to read the attached press articles.  As the case continues, please note that we intend to provide links to any additional press articles on our website.

 

Apart from the ASIC Proceedings, two other legal actions are currently on foot as outlined below in brief.

 

Listing Fee Proceedings

 

In the Listing Fee Proceedings APCH (under the control of Korda Mentha, one of the receivers and managers of APCH) is seeking the recovery of the $33m listing fee plus interest.  These proceedings are being conducted in the Supreme Court of Victoria, and the Defendants are as follows:

 

 

Former APCH Directors

 

Dr Michael Wooldridge

Mr William Lewski      

Mr Peter Clarke      

Mr Mark Butler

Mr Kim Jaques    

Mr Philip Powell

Mr Anthony Hancy

Mr Neil Rodaway      

                 

Other Parties

Legal Advisers to APCH & Mr Lewski

Kidder Communities Pty Ltd

Madgwicks Lawyers

 

Management Rights Proceedings

 

On 18 March 2013, KordaMentha (one of the receivers and managers of APCH) filed proceedings on behalf of APCH in the Supreme Court of Victoria in relation to dealings in the management rights of Prime Trust.  The defendants to these proceedings are as follows:

 

Former APCH Directors           Members of Mr Lewski’s Immediate Family

 

Mr William Lewski                  

Dr Michael Wooldridge          

Mr Peter Clarke                

Mr Mark Butler

Mr Kim Jaques                  

Mr Philip Powell

                               

Entities Associated with Mr Lewski            

                               

Retirement Guide Pty Ltd

Daytree Pty Ltd                        

Carey Bay Pty Ltd

Australian Property Custodians Pty Ltd    

Australian Property Administrators Pty Ltd

 

 

We expect the Management Rights Proceedings to explore the circumstances in which the management rights for various Trust retirement villages were transferred to Retirement Guide Pty Ltd (“RG”) for no consideration, and the subsequent sale of those rights by RG to Babcock & Brown Communities Pty Ltd (now Lend Lease Primelife) for $60 million.

 

Further Legal Proceedings

 

We note that each of the three separate proceedings currently on foot is based on claims originally identified by the Prime Trust Action Group.  We expect that further legal proceedings may be initiated, including proceedings against certain parties who have not yet been named as defendants in the above matters.

 

We continue to engage with various stakeholders exploring potential claims against APCH and its former directors and their associated parties and entities, and are continuing to share the results of our research and investigations with the appropriate authorities.

 

Media Coverage

 

We note that there has been considerable TV coverage of Prime Trust in recent times, including extensive coverage on ABC’s 4Corners program on 4 March 2013 and A Current Affair on 19 March 2013.  

 

 

Thank you once again for your continued support of the Prime Trust Action Group.  

 

Prime Trust Action Group

www.primetrustactiongroup.com

 

Mr Peter Clarke

Mr Mark Butler

Mr Kim Jaques

Corporate Advisers to APCH

 

Kidder Williams Ltd

Mr David Williams

Mr Philip Powell

Corporate Advisers to APCH

 

Kidder Williams Ltd

Mr David William

Mr Philip Powell

Legal Advisers to APCH & Mr Lewski

 

Madgwicks Lawyers

Entities Associated with Mr Lewski

 

Daytree Pty Ltd

Carey Bay Pty Ltd

Australian Property Administrators Pty Ltd

Mrs Roslyn Lewski

Mr Joshua Lewski

Mr Matthew Lewski