By Mark Hawthorne and Eric Johnston
ANZ continues to be dogged by the problems of its former securities lending business. The liquidator of one of its former key clients, Primebroker Securities, has hit it with a fresh legal action seeking $97.7 million.
Liquidators Michael Humphris and Laurence Fitzgerald, of BDO, yesterday began legal proceedings in the Federal Court for the return of $86.2 million that the bank demanded from Primebroker in the six months before it was put into receivership.
The action on behalf of creditors, foreshadowed by BusinessDay, also seeks an order for a charge under which PricewaterhouseCoopers was appointed receiver of Primebroker to be set aside, and ANZ's floating charge over Primebroker's assets declared void.
The liquidators are seeking the return of a further $11.5 million recovered by ANZ's receivers.
A spokesman for ANZ said yesterday it had not yet received the action.
''But our intention is to defend the claim vigorously,'' the spokesman said. In order to defend the action, it is believed ANZ will need to demonstrate that Primebroker was solvent immediately after the charge was granted.
The liquidators allege ''ANZ sought and received substantial preferential payments and significant commercial advantages at the expense of the unsecured creditors''.
''Efforts to reach a settlement with ANZ have not been fruitful,'' Mr Fitzgerald said yesterday. ''The liquidator is seeking the case to be heard within six months.''
The action is expected to provide further insight into the actions of the bank as it sought to cut back its exposure to securities lending in the months after it was caught out with a large exposure to Opes Prime, a securities lender that collapsed owing ANZ more than $650 million.
The action by BDO is believed to be the precursor to a second $200 million damages claim by Melbourne-based brokerage Chimaera Capital, which operated Primebroker. It is possible these will be rolled into a single action.
ANZ appointed receivers to Primebroker Securities in July 2008, and Primebroker's directors appointed administrators in the same month. In October 2008, the administrators BDO were appointed as liquidators.
According to BDO, if successful, ''the action would enable the liquidators to continue the process of assessing all claims and determining a return to all creditors''. Primebroker owes $160 million to creditors, excluding ANZ.