LM seeking new loans
LM Investment Management’s administrators plan to ask Deutsche Bank for an additional loan on top of the $40 million it has advanced to the frozen LM First Mortgage Fund.
Wednesday, March 27th 2013, 10:50PM
Suncorp, which is owed A$22 million ($27.4 million) by LM's troubled Managed Performance Fund, wants to exit its position and the debt will need to be refinanced, Ginette Muller, of FTI Consulting, said.
The LM First Mortgage Fund fund has been frozen since 2009 with $100 million of 2750 New Zealanders’ money inside it but the first payout to investors was expected this month.
Muller said this week that payouts would continue, “with minimal disruption”.
FTI Consulting was called in as administrators of LM on March 19.
It is in the process of deciding whether the hand the company back to its directors, or opt for liquidation.
The administrators are set to ask court for an extension of time to decide the best course of action.
The Australian Securities and Investments Commission is reviewing LM.
The company holds an Australian Financial Services License allowing it to run managed investment schemes. Its licence has not been cancelled.
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