ANZ leaves Chimaera in the lurch

ANZ is winding back more of its financing arrangements with share brokers, the Herald Sun reported. ANZ yesterday said it would not proceed with a planned investment of $55 million in boutique broker Chimaera Financial Group.

The newspaper reported that the retreat on the Chimaera deal would be the first in a series of announcements.

The equity ANZ was to inject would have been used to pay down loans from ANZ. It isn't clear how ANZ's loans to Chimaera might now be repaid.

The Australian's columnist John Durie reported that due diligence by Korda Mentha for ANZ led the bank to back away from the planned investment.

Meanwhile The Australian separately reported that margin lender Lift Capital is likely to be put into liquidation on the advice of the administrators, McGrathNicol.

Creditors can expect a return of 60 cents in the dollar, according to the newspaper.