LKM Capital case continues
A SUPREME Court hearing of a case against LKM Capital directors has been set down for March 3, 2011.
The Coffs Harbour-based investment company collapsed in 2008 owing investors $63.6 million and since then receivers have been trying to recoup funds and unravel the company directors’ financial affairs.
A spokesman for the receivers and managers, BRI Ferrier, said the lengthening of legal proceedings would not affect the proposed repayment of about 10c in the dollar to debenture holders in March.
He said negotiations for the sale of Queensland retirement homes which will help to fund that payment, and another payment in June, were proceeding smoothly.
Following public examinations of two LKM directors, Rolf Koops and Stuart Malouf on October 21 at the Supreme Court in front of a court registrar, receivers and managers Brian Silvia and Andrew Cummins from BRI Ferrier said they were assessing the commercial viability of the Supreme Court proceedings in light of that information.
“Our preliminary view is that the examinations suggest the directors have limited current assets although they are not completely without means,” the receiver/managers said.
As a result Supreme Court proceedings were adjourned until December 10 and last week they were adjourned until next year.
In the Supreme Court so far there has been:
A public examination of Rolf Koops, May 18-20 2009.
Proceedings commenced against LKM directors Rolf Koops, Sandra Martin and Stuart Malouf, January 19, 2010.
Defences to the Statement of Claim in the Supreme Court proceedings filed by the defendant directors, March 2010.
Notice of motion filed by Mr Rolf Koops and Ms Sandra Martin seeking to strike out the claims in the Supreme Court proceedings against them, July 26, 2010.
Notice of motion filed by Mr Stuart Malouf seeking to strike out the claims in the Supreme Court proceedings against him, August 6, 2010.
Supreme Court proceedings and strike out applications adjourned to enable a mediation to take place between the parties and for early settlement to be explored, August 2010.
Mediation (ultimately unsuccessful) held before Andrew Rogers QC as mediator, August 30.
Supreme Court proceedings and strike out applications adjourned to enable public examinations of the directors, September 2010.
Orders obtained from the Supreme Court for production of documents and examination summonses to be issued to Mr Koops and Mr Malouf, September 15, 2010.
Further public examinations of Mr Koops and Mr Malouf before a court registrar, October 21, 2010.
Proceedings adjourned to December 10, 2010, to allow parties to explore possibility of settlement in light of recent public examinations.