Opes Prime Collapse Result

By Sandy Naidu | September 28, 2009

Opes Prime Collapsed in 2008, leaving behind financial heartache for many. In July 2009, a settlement was reached in the law suit against Opes Prime’s bankers, ANZ and Merrill Lynch. The creditors agreed to settle for $253 million. The creditors accepted the settlement, because the alternative of taking the banks to the court was a very lengthy process plus there was also a lot of uncertainty.

Opes Prime owed clients about $585 million at the time of its collapse and it had about 1200 clients. I had written a detailed post last year on this very topic - check it out here - opes prime collapse.

As a result of this settlement, the creditors will be paid 37 cents in a dollar and also a dividend before Christmas. The dividend amount and whether or it will even be paid is still uncertain and more details are expected in the coming months. This settlement releases ANZ and Merrill Lynch from all future legal obligations (regarding this case).

ASIC is now considering whether it should take any action against the directors - at the moment no word from them on this but we will surely hear more about it in the near future.

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