Normal
Well the announcement appears to be stating the facts. From what I understand from the legal jargon it would appear George has bought 5.5mil shares through Opes' now infamous margin lending practice.Owing to the margin George used to buy these shares, and ultimately with the collapse of Opes Prime, ANZ appointed receivers have maintained the shares aren't George's and will be sold as payment for Opes' outstanding debt.George is fighting this (assumption) on the grounds that he had no outstanding margin call and (my assumptions here) there were irregularities between the contract and the FSG when he signed up (I've read one says they own the shares, the other says they don't).If this does not work he has told them he can repay the loan to retain his shares. ANZ don't want this of course because the money they can make selling the shares is way larger than what his repayment would be.In either case ANZ will not be taking any prisoners right now. They will sell all the Image shares it has control over now, which evidently is more than just George's share; roughly 300,000 more. http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00828447This means 5.9 million shares are to be sold. Given that Image has an average trading volume of about 50,000 over the last year. This would take more than 115 days to complete. Hate to sound off the bad news but this will decimate share price growth potential for 2008.Savior will be an off market transaction but to be realistic, in the current state of credit markets, do you think George can find someone with AUD$8million+ who wants to buy Image shares in 3 days ????Bah Humbug.Your thoughts?
Well the announcement appears to be stating the facts. From what I understand from the legal jargon it would appear George has bought 5.5mil shares through Opes' now infamous margin lending practice.
Owing to the margin George used to buy these shares, and ultimately with the collapse of Opes Prime, ANZ appointed receivers have maintained the shares aren't George's and will be sold as payment for Opes' outstanding debt.
George is fighting this (assumption) on the grounds that he had no outstanding margin call and (my assumptions here) there were irregularities between the contract and the FSG when he signed up (I've read one says they own the shares, the other says they don't).
If this does not work he has told them he can repay the loan to retain his shares. ANZ don't want this of course because the money they can make selling the shares is way larger than what his repayment would be.
In either case ANZ will not be taking any prisoners right now. They will sell all the Image shares it has control over now, which evidently is more than just George's share; roughly 300,000 more.
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00828447
This means 5.9 million shares are to be sold. Given that Image has an average trading volume of about 50,000 over the last year. This would take more than 115 days to complete. Hate to sound off the bad news but this will decimate share price growth potential for 2008.
Savior will be an off market transaction but to be realistic, in the current state of credit markets, do you think George can find someone with AUD$8million+ who wants to buy Image shares in 3 days ????
Bah Humbug.
Your thoughts?
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