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Opes Prime hits Destra, Q Ltd

SYDNEY: Digital media company Destra and digital advertising group Q Ltd have both been badly hit by the collapse of stockbroker Opes Prime, with the director of both companies, Paul Choiselat, suffering a double whammy in the fallout.

Shares in Q Ltd have dropped 30% so far in today's trading as the digital group announced its directors Paul Choiselat and Mark Halstead both have margin lending arrangements with Opes Prime, totalling approximately $1.4 million in cash and 130 million in Q Ltd shares.

The receivers of Opes Prime are alleging ownership and control of the shares, along with a right to dispose of them, but Choiselat and Halstead today announced they were seeking legal advice on this.

Meanwhile, Choiselat has lost the majority of his shares in digital media company Destra, of which he is non-executive director, to Opes Prime's lender, the ANZ Bank, as part of the collapse of the stockbroking company. Domenic Carosa, founder & CEO of Destra, has also lost the majority of his shares to the ANZ.

Destra yesterday advised shareholders it had lost its 10% stake in production company Beyond. Destra's stake in Beyond had been financed by Opes Prime under an equity facility guaranteed by the ANZ Bank.
Destra's total financial loss is expected to be between $900,000 and $1 million.

The financial loss is significantly less than the value of Destra's stake in Beyond, as Destra still owed Opes $7.3 million at the time of the collapse, and is not expected to have to pay that dept to Opes or the ANZ Bank.

Destra said today it would push ahead with its $15 million rights issue announced to the market in mid-March, ahead of Opes going into voluntary receivership.

Story by: Mark Chenery, Adnews 3 April 2007