Perpetual continues Mahogany battle
Perpetual Trustees believes it has moved a step closer to recovering $125 million of Mahogany Capital note-holders’ funds, frozen since the collapse of Lehman Brothers, following court proceedings in the United Kingdom.
Perpetual announced that the UK Court of Appeal had ruled that Mahogany note-holders have priority over Lehman Brothers Special Financing (LBSF).
Perpetual Trustees began legal proceedings with respect to the monies nearly six months ago against the UK-based Bank of New York Corporate Trustee Services (BNY) to recover collateral that could be used to repay the Mahogany note-holders.
Perpetual said that while the latest decision was a positive step towards distributing the collateral to Mahogany investors, it remained to be seen whether BNY would now release it for distribution in circumstances where LBSF had sought permission to pursue a further appeal in the UK Supreme Court.
Commenting on the action, Perpetual Corporate Trust group executive Chris Green said the company’s sole objective was to ensure the best possible financial return to the Mahogany note-holders in what had become a complex and multi-jurisdictional legal environment.
AUTHOR
Mike Taylor
Recommended for you
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
