Creditors of Opes Prime Stockbroking could see a return of 80 cents in the dollar after ANZ agreed to a commercial settlement proposal with the failed broker’s liquidator.
The in-principle global settlement proposal involving all parties totals approximately $253 million in cash and other assets, ANZ said.
“ANZ understands that this represents a return of about 80 cents in the dollar by reference to the close-out positions based upon the dates established by the Federal Court,” the bank said.
The $253 million settlement pool is funded by contributions from ANZ and Merrill Lynch, which was another financier to Opes.
Merrill Lynch declined to comment.
The pool is also funded by the release of cash and other assets obtained by the receivers of Opes to liquidators, ANZ said.
Implementation of the scheme of may take some months. It will ultimately require court approval to take effect.
Provision was made for the uncertainties associated with securities lending in ANZ’s 2008 accounts, the bank said.
Separately, Australia’s fourth-biggest lender said it had provided a formal undertaking to ASIC in relation to its custody and securities processing business, ANZ Custodian Services.
The agreement is in the form of an enforceable undertaking (EU) and follows a review of ANZ Custodian Services by ASIC relating to the custody business’ involvement in securities lending and Opes Prime.
The EU will require ANZ to remedy deficiencies in operational procedures across the ANZ Custodian Services business, including its securities lending operations, ASIC said.
The program will be thoroughly reviewed by an expert who will regularly report to ASIC over the next year.
