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The NSW Supreme Court has found that RHG is in default on a $300 million loan used to finance some of its mortgages.
According to a report by AAP, the court ruled yesterday that the listed mortgage owner was in default on a loan used to back a package of mortgages called Unicredit Series (1) in October and December 2008 and January 2009.
German lender HypoVereinsbank (HVB) has sought to have the event of the default declared through BNY Trust Company since December 2008.
The ruling now clears the way for BNY to seek a receiver to be appointed to the mortgages, removing the mortgages from the $7.7 billion in mortgages that RHG manages.
A course open to the receiver is to sell the underlying mortgages to repay the original loan.
Following the Supreme Court ruling yesterday, RHG has entered into a trading halt.
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