As set out in previous updates, the Responsible Entity has set aside funds to pay a distribution of 1 cent per unit to ordinary unitholders, with the payment subject to legal advice prior to payment.
Timing on payment
By way of update, we are delayed in making this distribution because we have not yet received the legal advice to proceed. Our lawyers are still in the process of assessing the risk of any further litigation against the Pacific First Mortgage Fund (Fund). The legal work includes a review to determine all possible claims and we will provide a further update by 7 June 2018.
Update on bankruptcy proceedings
By way of update on bankruptcy and recovery proceedings:
- Notices of bankruptcy have been served on Messrs Sullivan, Swan and the estate of Donaldson.
- A meeting of creditors had been convened for Mr Sullivan but this has now been adjourned to allow for further investigations to be undertaken by the Controlling Trustees at the request of Trilogy to 4 June 2018.
- Mr McCormick has been declared bankrupt and the Responsible Entity, on behalf of the Fund, is liaising with the Official Assignee in New Zealand to recover and liquidate assets.
We will provide you a further update as this matter progresses.
For a recap on matters to date, please read the summary available on the Maurice Blackburn website.