Update on Unitholder distribution payment and other matters – 07/06/2018

Update on bankruptcy proceedings

By way of update on bankruptcy and recovery proceedings:

  1. A meeting of creditors for Mr Sullivan was held on 4 June 2018. The outcome was that the following resolutions were not passed:
    (a) The debtor’s property no longer be subject to the control of the controlling trustee
    (b) Require the debtor to execute a personal insolvency agreement, or
    (c) Require the debtor to present a debtor’s petition within 7 days.
  2. Consequently, the debtor remains in controlling trusteeship until 7 August 2018, unless he executes his own petition prior to that date.
  3. The bankruptcy of Mr Swan has progressed with the controlling trustee now appointed by the court and his assets subject to a sequestration order.
  4. We are still working with the controlling trustees in bankruptcy in relation to the estate of Donaldson and Mr McCormick, to recover and liquidate assets.

We will provide you a further update as this matter progresses.

Update on timing on distribution payment

The legal work relating to assess the risk of any further litigation against the Pacific First Mortgage Fund (Fund) is continuing.  Our lawyers have now progressed to considering the risk of claims against receivers of assets controlled by the Fund, who have a right of indemnity against the Fund.

The distribution payment will be delayed until we receive the legal advice to proceed.  We will provide a further update by 28 June 2018 or earlier if possible.