Too early to tally Opes losses

The receiver of Opes Prime says it cannot say yet if unsecured creditors and clients of the collapsed stockbroker will see any money returned to them.
 
Opes Prime Group, Opes Prime Stockbroking, Leveraged Capital and Hawkswood Investments were placed in the hands of receivers Chris Campbell and Sal Algeri of Deloitte Corporate Reorganisation Group on March 27 after trading ``irregularities'' were uncovered.
 
The receivers today sent an information circular to the clients of Opes Prime and Leveraged Capital. Both companies provided stock lending and borrowing services.

''At this stage we are not in a position to advise on either the likely return to creditors (including clients of the group) or when we will be able to retire as receivers and managers of Opes so that any remaining realisation of the assets of Opes and their distribution among creditors can be conducted by the voluntary administrators,'' Mr Campbell and Mr Algeri said.

''The position regarding Opes Prime Stockbroking Ltd and Leveraged Capital Pty Ltd client accounts remains unclear and will take some time to reconcile.''
All client accounts for Opes and Leveraged Capital have been frozen.

The receivers said they were reviewing the financial position of Opes, all individual client accounts and the position of financiers and other counterparties.
Individual customer contracts number more than 1,000.

Deloitte said on Friday that Opes owed more than $1 billion to secured creditors, primarily the ANZ Banking Group and Merrill Lynch.

ANZ and Merrill Lynch have already started selling stocks held by Opes to recover some of their loans to Opes.

John Lindholm of Ferrier Hodgson, who was appointed administrator of Opes on Friday has said the solvency of the brokerage had been put under pressure due to a number of major clients not meeting significant margin calls.

On Friday the corporate watchdog, the Australian Securities and Investments Commission (ASIC), obtained orders from the Federal Court restraining Opes chief executive Lirim (Laurie) Emini from leaving Australia without the court's consent until April 4.

ASIC investigator Richard Vandeloo told the court that he understood that various Opes staff had been instructed by Mr Emini to manipulate some client accounts so that the clients could avoid margin calls.

Meanwhile, Hedley Leisure and Gaming Property Fund today requested that its securities be suspended from trading on the Australian stock exchange, pending clarification of the special crossing of 10.8 million Hedley securities on Friday.

There has been speculation that the share sale, on March 28, was linked to Opes Prime.

Advertising firm Q Ltd today requested a trading halt for its shares, saying that it had become aware that one of its substantial shareholders held its shares through an account with Opes Prime.

Q Ltd requested the trading halt pending advice being sought from the receiver.

Mobile phone games provider Jumbuck Entertainment also requested a trading halt on the same grounds.

Natural gas explorer Po Valley Energy Ltd said today that director Byron Pirola had advised the company that entities associated with him had a margin-lending arrangement with Opes Prime.

Po Valley said the facility balance was about $2 million, with about 7.8 million Po Valley shares as collateral.

Dr Pirola has advised that no margin call had been made at this time.

Po Valley said it had not received any notice of change in beneficial ownership of the shares.

AAP