Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Yellow Brick Road taken to court over performance bonus

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Yellow Brick Road taken to court over performance bonus

markbouris markbouris
Tas Bindi 2 minute read

Legal proceedings against Yellow Brick Road have commenced over the earn-out conditions contained in a 2014 share sale agreement.

Yellow Brick Road revealed in a disclosure to the Australian Securities Exchange (ASX) that it has been served with a summons over the earn-out provisions stipulated in the agreement it signed to acquire non-bank lender Resi Mortgage Corporation.

Under the share sale agreement dated 8 July 2014, the firm was required to pay $28 million in cash and $5.5 million in shares, with a deferred amount of up to $2.5 million also payable one year after settlement if certain earn-out conditions were met.

Yellow Brick Road said that it will defend its position in court that no amount is payable as the conditions were not satisfied.

“Based on advice it has received to date, YBR is confident that its interpretation of the [share sale agreement] is correct, and that no earn-out amount is payable,” the firm said in its disclosure to the ASX.

Advertisement
Advertisement

The Adviser contacted Yellow Brick Road. However, the company was unable to provide a comment at this stage.

[Related: Royal commission ‘not representative’ of broking: Bouris]

 

 

Yellow Brick Road taken to court over performance bonus
markbouris
TheAdviser logo
markbouris
Tas Bindi

Tas Bindi

Tas Bindi is the features editor for The Adviser magazine. She writes about the mortgage industry, macroeconomics, fintech, financial regulation, and market trends.  

Prior to joining Momentum Media, Tas wrote for business and technology titles such as ZDNet, TechRepublic, Startup Daily, and Dynamic Business. 

You can email Tas on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

FROM THE WEB
more from the adviser
Analysis uncovers ‘surprising’ spike in high-LVR lending

The share of new loans approved with an LVR greater than 80 per c...

Banks charged $1.17bn in home loan fees

More than a quarter of the $4.19 billion dollars of bank fees cha...

P2P lender drops car loan rates

Peer-to-peer lender RateSetter has announced that it has dropped ...