Prime Trust Action Group Unitholder Update No. 18 – 3 August 2012





The attached article from the Australian Financial Review dated 20 July 2012 suggests that ASIC has now launched a formal investigation into the collapse of Prime Trust and that certain parties are being compelled to attend private examinations.  If the AFR is correct, we think this is a major step forward in bringing to account those responsible for the collapse of the Trust and hopefully assisting us to pursue recovery of investor losses.  We wholeheartedly welcome and support any such move by ASIC should the actions described in the article be correct.  


As investors will recall, we have made numerous submissions to ASIC raising a multitude of our serious concerns and have suggested that the various alleged breaches are of such importance that a formal investigation is indeed warranted.  


Listing Fee Claim


We understand that the Listing Fee Claim (a claim originally identified by members of the Prime Trust Action Group prior to the collapse of the Trust), and a claim which is currently under the control of certain of the secured creditors, is due to return to Court on 10 August 2012 for further directions.


Liquidators’ Appeal


We refer to Unitholder Update No 15, where we detailed that the Liquidators lodged a notice of intention to appeal the Supreme Court’s decision of 4 April 2012.


Unitholders will recall that the Supreme Court found that the security held by Capital Finance Australia Limited (“CFAL”) extended to all the assets of the Trust, and was not limited only to the assets of the specific villages to which the loans they provided were applied, a direct result of this being that Receivers appointed by CFAL took control of the Listing Fee Claim.  We understand that the Liquidators are appealing this aspect of the Supreme Court’s decision and the matter is due to return to Court in August 2012 for further directions.  


Another aspect of the Supreme Court’s decision was its rejection of the proposed action by the Liquidators together with interests associated with Mr Lewski, against Lend Lease Primelife, the manager of the Trust’s retirement villages.  We maintain that pursuing such an action with involvement of interests associated with Lewski is inappropriate and we hope that no appeal will be pursued in relation to this aspect of the decision.


Daytree Claim


On 5 April 2012, Daytree Pty Ltd, an entity associated with Mr Lewski, commenced Court action against APCH seeking the payment of certain funds from APCH.  We understand that the Liquidators have filed their submissions in this matter with the Court as per the agreed timetable.  We further understand that Daytree Pty Ltd is a number of weeks late in filing its submissions despite the fact it initiated the proceedings.  We currently understand that this matter is due to return to Court on 10 August 2012 for further directions.



Proposed Sale of Trust Retirement Villages


As reported in previous Unitholder Updates, Expressions of Interest for the purchase of seven of the Trust’s retirement villages closed on 31 May 2012.  To date there has been no announcement from KordaMentha as to the result of this marketing campaign.


Litigation Funding


In recent weeks we have been busy preparing further submissions to litigation funders seeking their financial support in relation to a number of potential legal actions that, if successful, would lead to recovery of funds for investors.  Whilst we believe that our legal position is strong there are a number of complex issues that need to be considered.  We expect to lodge our submissions within the next fortnight.


Fighting Fund


Please note that we have been unable to identify some of the contributors to the Fighting Fund.  For any investor who has not yet received a receipt for their contribution, please send an email to us with details of the contribution and we will promptly rectify the situation.  


Other Matters


Please remember to advise us of any change to your email address.  Also, if you are receiving a copy of this Update through the post but now have access to an email address, please advise us accordingly at our email adress.


Please note that all previous Unitholder Updates are available from our website at  We intend to issue Unitholder Updates at the end of each month and encourage investors to periodically check our website for breaking news.  


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



Prime Trust Action Group

3 August 2012