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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.
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