‘No personal loan’

Press, 23 January 1988, Page 30

‘No personal loan’

PA Sydney Ariadne Australia, Ltd’s Bruce Judge has denied that Ariadne made loans to his personal company of more than $lO7 million which Ariadne has now written off. Mr Judge said in a short statement, “issued in response to media inquiries" that an accountant’s report, briefly mentioned during a court hearing over Ariadne’s failed bid to extend its rights issue, contained inaccuracies. Pembroke Securities, Ltd, which underwrote the $l2B million one-for-two issue due to close yesterday brought the court action to stop Ariadne extending it for six weeks. During the hearing Pembroke’s barrister, David Bennett, Q.C., submitted an affidavit which he said contained a report by accountants Arthur Andersen showing that Ariadne had lent Mr Judge’s private company Willand Securities, Ltd, two amounts involving more than $lO7 million which had been written off.

Mr Judge’s statement said the report was prepared from draft management accounts in a limited time and contained inaccuracies, including reference to a loan to Willand. He said auditors have been commissioned to report on an updated statement of assets and liabilities as at December 31, 1987, for presentation to shareholders. "The report should be completed within the next few weeks and accordingly, it would be inappropriate at this time to comment in isolation any further.” Neither he nor any Ariadne directors were available for comment. Meanwhile, the N.S.W. Supreme Court has ordered Ariadne to close its issue as originally scheduled. Pembroke last week refused to agree to an extension of the issue. On Monday Ariadne issued a notice to the exchange saying the offer would be extended for six weeks, to February 26. Mr Justice Newman

ordered Ariadne to withdraw the extension and to tell the Brisbane stock exchange that it was withdrawn. Ariadne later told the exchange the issue would not close. Pembroke is 60 per cent owned by Mr Adler’s FAI Insurances, Ltd, which has 100 per cent sub-underwritten the issue. A Brisbane broker, Paul Morgan and Company, which has been closely associated with Ariadne, said it was the buyer for 20 million of the 28.3 million Ariadne rights worth $536,085 . traded on Thursday, most at 2c each. But a Morgan spokesman would not say whether a single buyer was behind the transaction. Thursday’s trading briijgs the week's turnover in Ariadne rights to 39.3 million. The court heard that only 4312 shareholders, representing 3.3 million shares, had taken up their entitlement. Ariadne has 476 million shares on. issue. They closed yesterday down 3c at 49c.