potential double whammy.

April 14, 2008

DOZENS of listed companies still reeling from the Opes Prime Group collapse face mounting pressure this week as Merrill Lynch aims to quickly divest a multi-million-dollar portfolio of shares seized from failed stock lender Lift Capital.

According to Lift Capital's list of accepted securities for this month, the boutique firm was willing to lend clients money toaccumulate shareholdings in about 400 publicly listed companies.

While many of those companies were included in the S&P/ASX 200 Index, the firm also provided loans against share purchases in more speculative sectors, such as mining and technology.

West Australian explorers Gindalbie Metals and Bannerman Resources are two companies facing a potential double whammy.

Both have been significantly affected by the $1 billion collapse of Opes Prime last month. One of Gindalbie's largest investors, Melewar Steel Ventures, has successfully applied for an injunction to stop the ANZ selling shares that were subject to an equity financing agreement with Opes Prime, while Bannerman Resources had a large block of its shares change hands last week as part of the bank's Opes Prime sell-down.

Both companies were included on Lift Capital's list of accepted securities, with the firm willing to lend up to 50 per cent of the value of shares purchased in Gindalbie and 40 per cent for Bannerman shares.

Their share prices could take a hit this week as Merrill Lynch offloads about $700 million worth of stock seized as collateral on a massive margin loan provided to Lift Capital.