Draw your own conclusions.From City Pac's...

Draw your own conclusions.

From City Pac's website:
http://www.citypac.com.au/

"Litigation Costs
In response to Unitholder queries, City Pacific would like to advise that all litigation action taken by City Pacific against BalmainTrilogy in the Federal Court of Australia has been funded by City Pacific in its own right and not by the Fund."

From The Age Newspaper:
http://business.theage.com.au/business/city-pacific-used-fund-to-fend-off-rival-20090707-dbvd.html

City Pacific used fund to fend off rival
Miriam Steffens
July 8, 2009

CITY Pacific has been using money from the disputed $630 million First Mortgage Fund to fight off unit holders trying to sack the Gold Coast property company and install a rival as manager.

City Pacific told the Federal Court in Brisbane on Monday that it would pay for legal fees incurred since unit holders met last month to remove it as the fund's responsible entity.

Yet up to and including the meeting on June 25 — which the company tried and failed to prevent via an injunction — legal expenses to fend off rival Balmain Trilogy have been paid out of the fund's coffers.

A City Pacific spokesman declined to comment on how much money had been spent.

The revelation comes after the company told shareholders on Friday "all litigation action taken by City Pacific against Balmain Trilogy in the Federal Court … has been funded by City Pacific in its own right and not by the fund".

Sources close to the company said City Pacific had been required to incur the costs — to ensure for unit holders that the fund's constitution had been adhered to.

The company has challenged the meeting's resolution on the management change and the collection of proxy votes. Last week it also said a verified count of the ballot papers showed that the vote to remove it had failed by a hair's breadth, coming in just under the 50 per cent of units needed to take effect.

Balmain Trilogy, which is a joint venture between a loan originator, Balmain NB, and Trilogy Funds Management, insists it was overwhelmingly appointed to become the new manager of the fund, saying less than 8 per cent of unit holders had backed City Pacific.

While management of the fund hangs in the air, Justice John Dowsett forced an undertaking from City Pacific not to seek reimbursement for fees and expenses incurred since the meeting, other than a trustee amount set by the court.