By Tom Winnifrith | Sunday 14 May 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
More details of how Aussie poltroons Slater & Gordon (SGH) is suing Watchstone (WTG), Quenron (QPP) as was, for £600 million have emerged in the Aussie press. And for Britain's biggest fraudster of the past 30 years, already under SFO investigation, it is not good news. And top of the morning it is to you Robert Simon Terry.
The Weekend Australian reports that as part of Slater's bailout restructure $746 million of debt was sold at 20 cents in the dollar to a group of hedge funds led by Anchorage Capital and Varde Partners and they have first security over any proceeds on the £600 million claim. Given that Quenron has only £80 million cash (plus £50 million in an escrow account at Slater & Gordon), S&G cannot hope to recoup the whole £600 million.
Or can it? The paper suggests that if it wins S&G could extend the claim to former Quindell executives, including the fraudster in chief Mr Terry. They would be covered by a management profesional indemnity insurance policy but that would probably be invalidated if there was evidence of fraud. Is the pope a Catholic?
As such any extension of the claim, if it is successful, would probably see S&G going after the c£50 million that Terry took out of Quindell personally.
Penury, and a major jail sentence once the SFO has finished with him. It couldn't happen to a nicer guy.
Never miss a story.
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