This article is from the Australian Property Journal archive
PHIL Sullivan has withdrawn from the fight to regain control of the Pacific First Mortgage Fund, formerly run by his failed finance company City Pacific.
The current manager of the fund, Balmain Trilogy called on unit holders in to continue to lodge proxies against the appointment of Stacks Managed Investments, as the new manager of the fund following Sullivan’s withdrawal of support for a meeting scheduled for December 9.
Until such time as Matthew Bransgrove – Sullivan’s lawyer and the convenor of the meeting – formally abandons the meeting, unit holders should assume it is proceeding.
Balmain Trilogy chief executive Andrew Griffin has called on Stacks Finance to confirm that it was no longer associated with the Bransgrove/Sullivan proposal and has no ongoing interest in taking over as the responsible entity of the fund.
Griffin said Balmain Trilogy has received overwhelming support from unit holders wanting to retain it as manager, with more than 95% of proxies cast so far opposed to the Bransgrove/Sullivan proposal to appoint Stacks Managed Investments as the new manager.
Griffin said the lack of support for the Bransgrove/Sullivan proposal was the real motive behind the announcement by the undisclosed convening unit holders that the December 9 meeting was being postponed indefinitely.
“The entire exercise has been an attempt by Sullivan to regain control of the Fund and to head off examination of a series of transactions that resulted in a massive erosion of unit holder value when Sullivan was chief executive.
“The way that this has been handled, including the confusion around the reported postponement, is just another example of incompetence from the Bransgrove/Sullivan camp. Serious questions have to be asked as to how PFMF would be managed if the proposal put forward by Sullivan and Bransgrove were to succeed when you consider the shambolic way in which they have managed their proposal,” he added.
“I am pleased to say that unitholders have seen through the scare-mongering of Bransgrove and Sullivan and seen the proposal for what it is – a self interested campaign that was nothing short of an embarrassment. Over 2,700 unitholders have already lodged their proxies with Computershare and 95%of votes counted have been cast AGAINST the Bransgrove/Sullivan proposal,” he continued.
“It is disappointing that Unitholders have again been victim of another Sullivan-backed initiative. Bransgrove and Sullivan have created a great deal of confusion amongst Unitholders. We assure Unitholders that this has only strengthened our resolve to bring Sullivan and his associates to account.
“Given history and the way this campaign has been run, I cannot understand why Stacks Finance or any reputable organisation would ever want to associate themselves with Sullivan and Bransgrove in relation to any matter involving the fund,” Griffin concluded.
PropertyReview
