Published 24 April 2009
Propertyfinance Group Ltd said on Wednesday its main subsidiary, Propertyfinance Securities Ltd, had applied for a High Court injunction to restrict its trustee, Covenant Trustee Co Ltd from being able to appoint receivers until Propertyfinance Securities can hold its previously announced special meeting of stockholders. Propertyfinance Securities directors Darryl Queen & Barney Sundstrum, supported by the trustee’s independent expert, “are strongly of the view that receivership provides no better result for Propertyfinance Securities’ stockholders than the revised moratorium that is to be put to the stockholders for approval. “The directors strongly believe that it is a fundamental principle that stockholders should ultimately make the decision whether or not to approve the revised moratorium.” On Monday, the Securities Commission banned advertisements by Propertyfinance Securities for the proposed restructure of its moratorium arrangements. Commission chairman Jane Diplock said: “The commission believes the advertisements were likely to mislead investors about the relative advantages & disadvantages of the proposal as compared with the alternative option of receivership, and did not comply with the law.”
Attribution: Company statement, story written by Bob Dey for the Bob Dey Property Report.