opes prime clients seek injunction fed court

Business Spectator link: http://www.businessspectator.com.au/bs.nsf/Article/Opes-Prime-clients-seek-injunction-DA9CU?OpenDocument

Opes Prime clients seek injunction


By a staff reporter

Four clients of collapsed stock broking firm Opes Prime have appeared before the Federal Court seeking an injunction to stop the ANZ Bank from selling shares they believe they own.

The Opes Prime clients – Jason Dixon, Solen Pty Ltd, Gull Investments Pty Ltd and CMG Equities Pty Ltd – argue that documentation they received when entering into an arrangement with Opes Prime state that they are the beneficial owners of the stock they lent to the broker.

However, it is believed that Opes Prime’s contracts with clients effectively transferred beneficial ownership to the stock broker, enabling ANZ and Merrill Lynch to take control of the shares previously held by Opes Prime.

ANZ has liquidated 27 per cent of the $616 million worth of shares it took possession of upon Opes Prime’s collapse.

Merrill Lynch has already liquidated all of the shares it took possession of.

The case has been adjourned at will continue before the Federal Court in Melbourne on Thursday morning.


cheers
Marny