Court refuses Melewar continuation of injunction against...

Court refuses Melewar continuation of injunction against ANZ
16-April-08 by AAP

Malaysian company Melewar Steel Ventures Ltd and the managing director of Conquest Mining Ltd were today unsuccessful in their joint attempt to prevent ANZ Banking Group Ltd from selling shares it seized from Opes Prime.

The NSW Supreme Court Justice William Windeyer ordered that the application for continuation of the interlocutory injunctions be dismissed.

They will expire at 1400 AEST today - but the plaintiffs have until the expiry time to appeal the order.

The plaintiffs had been granted a one-week injunction, which was extended last Friday until today.

At the centre of the dispute is Melewar's parcel of 32 million shares that it holds in Perth-based iron ore producer Gindalbie and shares in Perth-based Conquest Mining that managing director John Terpu says are his.

Melewar's parcel of shares were held across Opes Prime's financiers - ANZ, Merrill Lynch and Dresdner - with ANZ holding 8.5 million of the shares.

Mr Terpu says he and his superannuation fund have around 15 million shares in Conquest, which were put up as collateral for a margin loan.

ANZ will now be able to sell the shares it holds in Gindalbie and Conquest Mining before a hearing takes place into whether or not Opes Prime misled the clients.

Melewar and Mr Terpu say they were misled by Opes Prime into believing they would retain ownership of their shares.

ANZ wants the case moved to the Federal Court of Australia in Melbourne where there are other proceedings related to Opes Prime.

Justice Windeyer's decision to reject the continuation of the injunction hinged on the potential damages that Melewar and Mr Terpu would receive - which he said would be an adequate remedy.

Opes Prime collapsed two weeks ago and was placed into receivership and administration after cash and stock movement irregularities were uncovered in a small number of accounts.

The secured creditors of Opes subsequently began selling the shares that Opes clients had placed with the failed stockbroker, in a bid to recoup more than $1 billion in loans to Opes.

The move has sparked various legal actions by Opes Prime clients who claim that the shares still belong to them and want them returned.