Adelaide Equity Finance, formerly Goldman Sachs JBWere Finance, launched action in the Brisbane Supreme Court to recover more than $4 million over an unpaid margin loan from former MFS chiefs Michael King and Phil Adams, the
Herald Sun reported.
AEF is a subsidiary of Bendigo and Adelaide Bank.
Court documents allege the financier entered into a margin lending facility with Fortmore Pty Ltd in 2005 for funds of up to $10 million.
According to AEF's statement of claim, Fortmore failed to answer a margin call made on January 23 this year after racking up borrowings of $7 million against shares valued at only $4 million.
Fortmore was given a February 13 deadline to repay the $4.3 million and AEF has now launched court proceedings, the newspaper reported.