Perpetual legal action continues
The future of investment house, Elderslie Finance Corporation, remains in the balance following proceedings in the Federal Court last week suggesting the business is about to be sold and, as a result, will receive a cash injection.
The Federal Court on Friday adjourned its decision on an application by Perpetual Limited subsidiary, Perpetual Trustees WA Limited, for various orders against Elderslie after the company provided new evidence including a contract of sale and provided a number of undertakings to the court that served to preserve the financial position of the company during the term of the adjournment.
Perpetual had sought the orders in late May after a report conducted by PricewaterhouseCoopers suggested it was likely Elderslie was or would become insolvent unless the company was sold and received a significant cash injection to meet its short-term liquidity requirements.
Perpetual general manager trust and fund services Chris Green said the sale of the company together with a significant injection of capital would be in the best interests of debenture holders.
“Given the new material provided in court evidencing a signed contract of sale and further affidavit evidence supporting an injection of funds into the company, Perpetual Trustees WA did not contest the adjournment until 1 July, 2008,” he said.
AUTHOR
Mike Taylor
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
