ARMIDALE Dumaresq Council (ADC) is likely to receive about another $2 million back from Collateral Debt Obligations (CDO) investments from the wind-up of Lehman Bros Australia.
The Australian Financial Review (AFR), on 16 April, reported that local councils, churches, universities and charities across Australia were found to have been misled in breach of fiduciary duties by Lehman Bros Australia, and are likely receive up to 49 cents in the dollar back from the wind-up by PPB Advisory, the administrators and liquidators of Lehman Bros Australia.
“The likely return of money is great news on top of the return of over $3 million we heard about last month from the Dante series of CDOs. Council is continuing in its commitment to its ratepayers to chase the return of investment monies made illegally back in 2007-’08 by council’s former investment fund manager,” said ADC’s Mayor, Cr Jim Maher.
ADC’s General Manager, Shane Burns, stated that council ws likely to see around $2m returned to its bank account in the second half on this calendar year.
The AFR article flagged that the IMF had been funding legal actions against the rating agencies.
Mr Burns added that this may be a potential source of action for the balance of investment funds sought for return and, if successful, could see another $2 million net of costs returned.
