bul, opes prime and anz overhang, page-16

All,

ANZ can't currently sell and, will not be able to do so until the issue of whether the ANZ appointed receivership was valid, at law, is determined. The central issue that flows from this is that if the appointment were not valid, then the assets never vested and cannot be the subject of receivership powers to sell.

Put simlply, and I'm trying to do this without legal jargon, if as the Court has decided, the receiver was not validly appointed, then ANZ has no right, at law, to sell the shares and apply the proceeds to pay down the debt owed by Primbrokers to it's secured creditors.

If they did sell them, and assuming the decision of the court at first instance is correct, it would be coversion (selling someone elses asset without contractual or court ordered authority), and the true owners could sue ANZ for recovery of the loss, and possibly the lost opportunity cost of missing a quid elsewhere.

There are a number of reasons why the ANZ receiver is currently sitting on it's hands, but the main reason is they have been challenged on their legal ability to sell. Selling now without getting an appellate court decision to reverse the supreme court decision at first instance would mean being sued by the true holders and having to account for profits, interest etc. Trust issues may arise also.

This is complicated, and made even more so by the fact that some of the shares were purchased under margin to the big banks...this tends to muddy the waters more.

Sit tight, the court of appeal will hear this soon enough (I'd say mid year given the backlog of dockets) and the fate of the shares will be decided again, perhaps to go to the High Court. In any event, I imagine BUL would be seeking counsel to advise on the issue of obtaining court directions on the orderly sale of the shares if it turns out the receivership appointment was valid.

In the interim, up the mighty BUL!