Perpetual moves on Mahogany

Lawyers representing Perpetual Trustee Company Limited have written to Mahogany Capital confirming that Perpetual has extracted more than $1.5 million from Mahogany Capital’s 2 Series Accounts in relation to legal proceedings in both the UK and the US.

In an announcement released to the Australian Securities Exchange (ASX) today, Mahogany published the contents of a letter received from Perpetual’s lawyers, which explained that Perpetual had enforced its security over the 2 Series Accounts and had applied part of the money to partially reimburse itself for costs and expenses incurred in relation to the legal proceedings.

The letter from Perpetual’s lawyers asserted that the company was capable of doing so without notice because of “subsisting events of default in both series".

The letter said as a result of the enforcement action, Perpetual was likely to be regarded as the controller of the funds standing to the credit of the accounts, so would be filing the relevant notifications with the Australian Securities and Investments Commission.

In its ASX notification, Mahogany said Perpetual had not advised how it came to determine the amounts that it took from the two Series' bank accounts nor the apportionment between the two Series.

It said it would be taking advice and would keep note-holders informed of developments.