Drake and co hit with claim

From the Australian, and it seems that BDO and KoraMentha are cooperating:

Receivers at KordaMentha to another fund previously managed by LM Investment Management, the Managed Performance Fund, have also been added to the legal action.

But with MPF having no cash left against which to claim, BDO is seeking control of MPF’s remaining assets so it can recoup its claimed $20m when future assets are sold.

BDO’s claim relates to some of the proceeds of litigation launched after the group’s collapse being paid to MPF rather than to the First Mortgage Income Fund, which should have had priority given the terms of its charge.

MPF had a second-ranking charge.

Not good news for MPF of course. Further comment welcome.

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