A THIRD stock broking and margin lending group, Chimaera, is sailing close to collapse, having entered rescue talks with its financial backers about loans worth at least $500 million.
The Melbourne-based group is understood to be working with its main banker ANZ in an effort to stave off administration.
One banking source said yesterday he believed Chimaera could have "difficulty settling some of their trades over the next few days".
ANZ last month took a $500million guarantee over assets when it provided Chimaera with additional funding.
Chimaera managing director Ian Pattison did not return calls from The Australian yesterday.
Chimaera operates a similar model to those used by collapsed groups Opes Prime and Lift Capital as well as troubled Sydney broker Tricom, in which clients pledge their share portfolios as collateral for a margin loan.
Under the model, the shares are pooled by the lender as collateral for a bigger loan from banks.
In the case of an inability by the lending house to pay the bank back, the bank takes the entire share portfolio. In the case of Opes and Lift, this has led to a swift sell-down of the shares to pay back the loan, leaving margin lending clients with limited recourse as unsecured creditors.
Opes Prime administrators Ferrier Hodgson will issue a report to the company's creditors at the end of the week.
They are targeting an April 29 meeting to tip the group into liquidation.
Administrator John Lindholm said there had been no change on the view that creditors would get "up to" 30c in the dollar return.
"The sooner we can get Opes into liquidation the better, as we have stronger powers," Mr Lindholm said.
These powers include exploring preferential deals, such as those allegedly given to a number of favoured clients including Sydney lawyer Chris Murphy.
Opes finance chief Tony Iremonger did not return calls but Mr Lindholm said he was co-operating with the administrators and receivers and was not suspected of any wrongdoing.
The ANZ continued its Opes share sell-down yesterday and is now understood to have sold about 60 per cent of its $650million share portfolio.
ANZ has said it does not expect any material losses from its dealings with Opes or any other clients in the sector but has quadrupled its bad debt provision to almost $1 billion to weather the growing financial meltdown.
ANZ chief executive Mike Smith said yesterday he was spearheading an internal review into the bank's securities lending business, and its involvement in the collapse of Opes Prime.



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