Trilogy Capital Group will launch a hostile takeover bid within weeks for the billion dollar City Pacific First Mortgage Fund,
The Australian reported.
Trilogy chairman Rodger Bacon told the newspaper the fund manager contacted "close to 1000" City Pacific fund investors and was close to launching an official takeover, seeking more than 50 per cent control.
The First Mortgage Fund has not paid a distribution to investors for many months and the fund, and its manager, the listed City Pacific, are trading only with the cooperation of its main lender, Commonwealth Bank.
Bacon said Trilogy would seek to replace the listed City Pacific as the responsible entity controlling the First Mortgage Fund, which had close to $1 billion on loan to property developers, though the recession must be eroding the value of its loans.
City Pacific announced to the ASX last week that Commonwealth Bank agreed to extend loans with each of the fund and the management company.