The sale of Madison Financial Group has hit a snag in the form of a Chinese Group which has asserted a competing security interest over the group which has acted as a brake on the sale of the dealer group by OneVue.
OneVue informed the Australian Securities Exchange (ASX) today that the sale of Madison was imminent and was likely to be completed within 14 days.
It said that one condition precedent for the sale, however, was to obtain consent to the sale from Taiping Trustees Limited – a Chinese state-owned financier that was a creditor to Sargon Capital or, alternatively a court order to permit the sale.
“The reason for this condition is that China-Taiping very recently asserted a competing security interest in the shares of Madison Financial Group,” it said.
“While OneVue maintains that is has a priority security interest and is entitled to the whole of the sale proceeds, in order to avoid disrupting the sale process, OneVue and the receivers intend to work closely with China-Taiping and its advisers to facilitate the sale.
“It is presently envisaged that following completion of the sale, the competing claims to the proceeds of the Madison sale will be resolved either by agreement or by court determination.”