Langbar International

the railwaymen - 30 Dec'05 - 13:02 - 39282 of 39296
I wonder if its worth getting in touch with the MM direct?

Not until you have the documentation to take the matter further. You see, you need proof to take the matter to the courts on the grounds of non-performance.

For that you need written proof that the MM agreed a settlement date and failed to deliver. You need to show the court that they had plenty of opportunity to settle but still failed to do so.

Only when all the documentary proof is available - contract note, letters showing the MM and settlement failure have been obtained, can you write to the MM to demand that they settle the transaction or refund your money.

It is possible that they would try to 'borrow' the stock from Merrills. If this was done, then Merrills would get the interest payments on the outstanding transaction. The transaction could be effected through the use of LSE Rule 3045. This was the rule the LSE used abusively in the Room Service Scandal. If this transaction was agreed, then the shares would be delivered to Winterflood, who would then deliver into the CREST account. The reason they have not done this up until now is that it would cost them interest on the transaction each month and this would mount up whilst the share is still in suspension. The MM would be counting on the share re-listing as soon as possible. If it remained suspended for a year or two - because of the fraud investigation, then the MM could end up out of pocket. So it all depends on whether they can obtain the shares by borrowing or buying whilst the share is suspended.