Trustee seeks receiver for Elderslie Finance
The trustee to Elderslie Finance Corp appears to want to appoint receivers to the firm, but is seeking the support of the Federal Court of Australia before doing so.Perpetual Trustees WA on Wednesday last week applied to the court for a series of orders. The court will hear the trustee's case in Sydney today.Among orders sought by Perpetual are those seeking to restrain Elderslie from accepting funds from the public, from paying investors and from offering assets as security.Smart Company first reported on the action yesterday afternoon.It is not clear what grounds Perpetual has for its case or what supporting material it will bring before the court today.The business underwent a restructuring over 2006 and 2007 after plans for a sale fell through, with efforts to sell or write-down various property assets and technology investments.Given the trustee's apparent lack of conviction in the financial status of Elderslie, it's somewhat odd Perpetual have not already appointed a receiver to the firm in line with the trust deed.Instead, Perpetual is asking the court for an order that the charge created under the trust deed is "immediately enforceable" including by the "appointment of a receiver".Perpetual may consider tit lacks powers to appoint a receiver - said to be an increasing trend in trustee situations since the Financial Services Reform Act introduced the notion of a "responsible entity". Elderslie management advised in an email yesterday that "upon legal advice we would not want to say anything that may be prejudicial so we think it would be best to await tomorrow's court hearing before making further statements."