RHG 0.00% 50.0¢ rhg limited

rhg loses courth battle

  1. 18 Posts.
    RHG loses court battle December 18, 2009 Business Day

    A court finds that listed mortgage owner RHG, formerly known as RAMS, is in default on a $300 million loan used to finance some of its mortgages.

    A court has found that listed mortgage owner RHG, formerly known as RAMS, is in default on a $300 million loan used to finance some of its mortgages.

    The NSW Supreme Court yesterday ruled RHG was in default on a loan used to back a package of mortgages known as Unicredit Series (1) in October and December 2008 and January 2009.

    The judgment lifts an injunction sought by RHG attempting to prevent BNY Trust Company from declaring an event of default.

    It also represents a victory for German lender HypoVereinsbank (HVB), which had sought to have the event of default declared through BNY since December in 2008.

    The ruling clears the way for BNY to seek a receiver to be appointed to the mortgages, removing the mortgages from the $7.7 billion in mortgages that RHG manages.

    A course open to the receiver is to sell the underlying mortgages to repay the original loan.

    Yesterday RHG, which is chaired by RAMS founder John Kinghorn, went into a trading halt.
 
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