Blue Sky breakaway fund wants Wilson to take the reins

Blue Sky breakaway fund wants Wilson to take the reins

After confirming its solvency and separation from its former parent company now in receivership, Blue Sky Alternatives Access Fund (ASX: BAF) is now taking steps to change its management and cut ties to the mothership once and for all.

In a letter to shareholders today, BAF chairman Michael Cottier (pictured) said a proposal would be made to change the manager to Wilson Asset Management International (WAMI) at an extraordinary general meeting. 

If the move is successful it will push out an existing management agreement with BSAAF Management Pty Limited, another Blue subsidiary which like BAF has not seen appointments of any external administrators.

Cottier said the BAF board was disappointed that prior to the appointment of KordaMentha and Pilot Partners, BLA chose to cease negotiations with WAMI as it did not consider it would be "in the best interests of the unitholders in those Blue Sky funds in which BAF is invested".

"We have also been advised that BSAAF and all other subsidiaries of BLA will continue to carry on their business as normal subject to the direction of KordaMentha," he said.

"Your board is concerned by the appointment of external administrators to BLA."

He mentioned the Management Services Agreement between BAF and BSAAF automatically terminates in the event either party ceases business or if a voluntary administrator or receiver is appointed to either party.

"However, the MSA remains in force and effect until terminated," he said.

"In the present circumstances, the Company is continuing to enforce its rights under the terms of the MSA."

Cottier highlighted key three key steps now being taken:

1. Removal of all BLA officers as account signatories to the investment account which holds the vast majority of BAF's cash assets and replaced them with the three BAF directors.

2. Withholding management fees payable to BSAAF until BSAAF has paid to BAF in full all rebates owed by BSAAF to BAF.

3. Sending numerous letters to BSAAF formalising requests for information and clarification of BSAAF's compliance with the MSA.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Sydney hotelier Glenn Piper has snatched up his third hospital...

Super fund HESTA "unconvinced", to vote against AGL demerger

Super fund HESTA "unconvinced", to vote against AGL demerger

Superannuation fund HESTA is backing the position of Australian tec...

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Leading online services marketplace Airtasker (ASX: ART) has comple...

Superloop set to buy tech services firm Acurus for $15m

Superloop set to buy tech services firm Acurus for $15m

After completing $140 million worth of divestments from Singapore a...