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
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