jan'08 trading in mfs & primebroker v anz , page-5

".....
In his affidavit, Mr Catalano said Primebroker had instructed ANZ to recall MFS stock from borrowers on January 7 last year, so that Primebroker could sell down that holding. Mr Catalano told the court that ANZ did not comply, and on January 16 trading in MFS shares ceased altogether.cont...."

Recent news re Primebroker...

"ANZ faces fresh suit
COLIN KRUGER
December 14, 2009


"ANZ Bank faces fresh legal action over its disastrous exposure to the margin lending industry during last year's sharemarket rout.

The liquidators of failed margin lender Primebroker Securities are expected to sign off on a litigation funding deal as early as today. It will pave the way for legal action against ANZ, which acted as the financier for Primebroker's business.

The liquidators, led by BDO's Laurie Fitzgerald, will use the funds to take legal action to overturn a $100 million charge ANZ obtained over Primebroker's assets months before it collapsed.

Mr Fitzgerald told BusinessDay that Primebroker was insolvent at the time the charge was taken in February last year.

''What we're seeking primarily is having their charge overturned and freeing up all the assets they've received under the charge,'' he said.

According to Mr Fitzgerald, it could be argued the bank was not even a creditor, given it received the shares offered by Primebroker's clients as security for its loan and had no ''comeback'' against the company itself.

ANZ has received as much as $42 million from Primebroker via its receivers. The bank was paid another $80 million in the week before the charge being taken over Primebroker's assets, according to Mr Fitzgerald.

The Liquidators said they had presented their case to ANZ but the bank showed no interest in settling the matter as it had with another failed margin lender, Opes Prime.

ANZ would not comment on the matter when contacted by BusinessDay.

ANZ has said previously it was owed around $260 million, most of it unsecured, but Mr Fitzgerald said the bank was yet to quantify its exposure to Primebroker.

The appointment of ANZ's receivers is already under a cloud following a court decision in September that found the receiver's appointment was not valid. This opens the way for legal action by Primebroker's parent company Chimaera Capital.

Chimaera is one of two parties that have submitted a proposal to provide litigation funding to Primebroker's liquidators.

One scenario could be that Primebroker's liquidator - representing all creditors - and Chimaera, join together for a damages claim against ANZ that could easily exceed $200 million. As well as being Primebroker's owner before the collapse, Chimaera ranks as one of its biggest creditors with claims totalling around $80 million."

http://www.smh.com.au/business/anz-faces-fresh-suit-20091213-kqj0.html

From memory C.Scott used Primebroker for margin loans...
and there may have been some question as to whether those shares were onlent?...

http://www.goldcoast.com.au/article/2008/07/15/13672_gold-coast-business.html

http://www.heraldsun.com.au/business/lender-chases-octaviars-scott-for-10m/story-e6frfh4f-1225712591589

"The 17.2 million shares pledged as security under the alleged loan agreement were seized by the ANZ when Primebroker collapsed on July 4 last year.

They make up about 70 per cent of the 24.2 million Octaviar shares seized from Primebroker by the bank when the stock lender failed."

According to the recent article Primebroker was insolvent...
"Mr Fitzgerald told BusinessDay that Primebroker was insolvent at the time the charge was taken in February last year."