Pelorus and MacarthurCook in legal dispute
A legal dispute has broken out between MacarthurCook Property Securities Fund and Pelorus Property Group over a debt relating to the former Reed Property Trust (RFML), which was acquired by Pelorus.
Both companies informed the Australian Securities Exchange (ASX) of the existence of the dispute, with Pelorus claiming that in acquiring RFML it “did not assume nor guarantee any of RFML’s prior, actual, contingent or alleged obligations”.
The Pelorus announcement said that if the RFML obligations did exist, the company did not regard them as being a financial risk to Pelorus.
For its part, MacarthurCook Property Securities said that it had a significant investment in the former Reed Property Trust and had been seeking unsuccessfully to redeem the investment.
“In order to protect and seek to maximize the underlying capital of our unit-holders, the responsible entity has commenced legal proceedings against RFML Limited to recover its investment,” the letter said.
It said it was seeking to recover $15 million plus additional fees of approximately $2.82 million, which it believed was payable under Facility Agreements entered into in 2007 resulting from the buy-back of units acquired in the Trust.
AUTHOR
Mike Taylor
Recommended for you
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
Global equity manager Orbis Investments has appointed a head of marketing from Capital Group as it becomes the latest manager to target advised retail investors.
While Australia prepares for the $3.5 trillion intergenerational wealth transfer, two female advisers have discussed why women may be detracted from seeking advice and the impact of the gender imbalance in the industry.
ETF provider Betashares has launched a global bond ETF as investors pour billions into cash and fixed income ETFs.
