letters of demand sent to opes clinets, page-5

Believe it this is the text of one I was forwarded with the amounts taken out. Poetic almost, they sent it 12 days before christmas. You have to pay by December 15th. Nice of them though they will accept a cheque.


Dear Sir/Madam
Opes Prime Stockbroking Ltd ACN 086 294 028
(In Liquidation) (Receivers and Managers Appointed) (“Opes”)

Account Name: ------
Account Number: ----

Securities Lending and Borrowing Agreement (SLBA)
On 1 April 2008 we wrote to you about our appointment as Receivers and Managers of the Opes and now provide you with updated account regarding your client account position
with Opes.

Liquidation and Effect on Client Accounts You may now have read in the media or been notified by Ferrier Hodgson that on 15 October 2008 Ferrier Hodgson, the Voluntary Administrators of Opes, were appointed Liquidators of Opes. The significance of the appointment of Liquidators to Opes is that there was automatically an event of default under the SLBA.

Effect of Automatic SLBA Default
Now that Liquidators have been appointed, there has been an event of default under all SLBAs that Opes entered into. The date of the event of default for most clients will be the date the Liquidators were appointed, being 15 October 2008. However, for clients who served Notice of an Event of Default on Opes before 15 October 2008, the date of the event of default will be the date on which the Notice was received by Opes.

It is now possible for all client accounts to be closed out and final amounts owing to or by clients can be calculated. We have now updated the Opes client system with the following data to calculate account balances:

1. relevant share market information
2. relevant corporate actions, such as the declaration of dividends and,
3. relevant interest rates are determined and applied to accounts

Interest on cash collateral provided by Opes is included in the calculation of final amounts owing. Any dividend with a payment date after the Performance Date is not included in the calculation of final amounts owing even if the dividend was declared before the Performance Date.

Dates for Calculation
For clients who experienced an event of default on 15 October 2008 the amount of their debts have been calculated under the SLBAs as follows:
1. the Performance Date will be 15 October 2008; and
2. the Default Valuation Time will be 4pm 16 October 2008 (Australian Eastern Daylight Saving Time), being the close of the Australian Securities Exchange on the first
business day after the Performance Date.

For clients who served Notice on Opes before 15 October 2008:
1. the Performance Date will be the date on which the Notice was received by Opes; and
2. the Default Valuation Time will be the close of the Australian Securities Exchange on the first or second business day after the Notice was received by Opes, depending on the time of day on which Opes received the Notice.

Following the event of default the netting provisions of the SLBA apply and enclosed is your account showing that you are a debtor of Opes for $---- plus interest of $---- as at 08 December 2008. Interest has been calculated daily on the debt from the Performance Date at the prevailing
Reserve Bank of Australia official cash rate plus 2% per annum.

Your debt is due and payable and we require that you pay your total debt (including interest) to Opes Prime on or before 15 December 2008. Payment may be made by cheque made payable to “Opes Prime Stockbroking Ltd (Receivers and Managers Appointed)(in liquidation)” delivered to the Receivers at Deloitte Corporate Reorganisation Group, 180 Lonsdale Street, Melbourne, Victoria, 3000.
Interest on your debt continues to accrue daily, currently at 6.25% per annum (being $per day). That interest rate will change in line with and remain 2% above the Reserve Bank of Australia official cash rate.
The table below shows the amount you must pay on a particular day to discharge the debt and interest on the debt on that day:
Date Amount payable
(including interest)
08 December 2008
09 December 2008
10 December 2008
11 December 2008
12 December 2008
15 December 2008

If you have any questions about this letter please respond by email to [email protected].

Yours faithfully
Salvatore Algeri
Receiver and Manager
Deloitte Touche Tohmatsu
Christopher Campbell
Receiver and Manager
Deloitte Touche Tohmatsu