Litigation Action – Update

21 April 2011

Following leave from ASIC, Trilogy Funds Management Limited (Trilogy) has commenced proceedings in the Supreme Court of New South Wales Equity Division for the issuing of Examination Summonses and Production Orders so that the examinable affairs of City Pacific Ltd (receivers and managers appointed) (in liq) can be investigated.

A number of Production Orders have been issued by the Supreme Court of NSW requiring third parties to produce various documents to the Court by 7 April 2011. To date our lawyers have received in excess of ten thousand documents in partial answer of Production Orders. However, a number of other production orders have been adjourned to 28 April 2011.

In conjunction with the issue of Production Orders, Examination Summonses have also been issued by the Court and served upon various individuals with knowledge of the examinable affairs of City Pacific (receivers and managers appointed) (in liq). It is expected that those examination hearings will take place in the Supreme Court of NSW during July 2011.

Subsequent to those examinations, legal advice will be sought to determine the best course of action to recover funds on behalf of Pacific First Mortgage Fund Unitholders.