HOPES are fading that ANZ will contribute to an Opes Prime settlement that would enable administrator John Lindholm to avoid lengthy and costly litigation.
As the Federal Court yesterday granted Mr Lindholm a second extension to the next meeting of Opes creditors from the end of this month until September 18, an ANZ spokesman said the sheer volume of litigation surrounding the Opes debacle had made a settlement "difficult''.
"While we are still engaged in exploratory talks, the prospects of advancing a settlement are difficult in the light of various legal actions, including class actions, launched by creditors,'' he said.
In his last circular to creditors on June 30, Mr Lindholm, a Ferrier Hodgson partner, said it was his "firm belief'' that a settlement could be achieved through a mediation process that was in creditors' best interests, The Australian reports.
But he warned there were complex matters involved that would take time to resolve.
In yesterday's hearing before judge Ray Finkelstein, Charles Scerri QC, for the administrator, conceded there was "no deal on the horizon''.
Counsel for Deloitte, the ANZ-appointed receiver of Opes, also argued against any further delay, on the grounds that no deed of company arrangement (DOCA) had been proposed and "no one is suggesting anyone is contemplating proposing one''.
But Justice Finkelstein agreed to the extension of the convening period for the second creditors' meeting, where creditors will vote on a DOCA, liquidation, or the most unlikely option of handing Opes back to its directors.
The court also laid down a timetable for a number of intervening steps leading up to the meeting.
It also emerged in yesterday's hearing that litigation funder IMF is close to launching a claim against ANZ and its fellow secured financier Merrill Lynch.
Perth-based lawyer Martin Bennett told the court by video that he acted for 58 Opes clients and would commence proceedings "shortly''.
ANZ, meanwhile, has realised 99 per cent of the $929 million portfolio of stocks held as a result of securities lending arrangements with Opes at the time administrators were appointed on March 27.
The sale process has recovered an amount that is in line with the bank's total Opes exposure of $722 million.
Read the full report in The Australian.
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