Merrill Lynch has sold off a parcel of shares in Paladin Energy Ltd thus extricating itself from its association with collapsed margin lender Lift Capital Partners Pty Ltd.

However, there are two directors of Paladin, Rick Crabb and Gillian Swaby, who are disputing Merrill Lynch’s right to liquidate the shares. This is a bit of a messy squabble that both parties could do without at the moment. However, it appears that Merrill have already sold the shares which are now the subject of a legal battle in the Federal Court in Perth. The directors claim that

“ They maintain that at all material times they had beneficial ownership of shares held by a nominee of LIFT Capital Partners Pty Ltd, and “that they will continue the legal proceedings they commenced to protect their interests in these shares including for repurchase of those shares if these have been sold”

The article, carried in The Sidney Morning Herald goes on to say that; ‘Last week, Lift Capital Partners Pty Ltd went into voluntary administration after its investors were spooked by concerns over the viability of its margin lending model. Merrill Lynch is Lift’s sole secured creditor and is owed close to $600 million, secured against stock worth between $700 to $800 million’

It’s a real shame that it comes to this, which is of course a distraction away from the main event. We don’t own any of this stock but we do wish them well and that they can put these issues to rest quickly.

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Have a good one.