Law firm Class Law is fighting to block receivers Ernst & Young selling off the rump of the now liquidated Aberdeen preferred income trust.
Class Law partner Stephen Alexander says he intends to fight the sale of the former flagship trust to property firms on behalf of his clients with splits and zero investments.
Alexander says the move to sell off the remaining assets of the business for tax losses will leave shareholders with “almost nothing”, receiving less than 1p for every share. Some investors paid as much 150p per share in 2000 when the trust peaked at £450m.
Although shareholders voted in favour of the sale at an EGM last week, Alex-ander believes the majority of shareholders did not cast their vote.
He says: “For such a minimal payment, we consider that the scheme is of little use to shareholders. In fact, we consider that the scheme may ultimately be more prejudicial to shareholders than it is of benefit to them.
“The reason is that the scheme will effectively prev-ent any claims being made against Aberdeen Asset Managers and others.
“If successful, these claims might produce a return for shareholders greater than the penny per share presently offered.”
Ernst & Young consultant Loch Callahan says: “The sale is now subject to court app-roval. The property companies involved believe they can utilise unrealised losses for tax. This will not affect the shareholders' ability to make any claim in the future.”