Staff gang up on Prebon

PAST and present staff at Prebon Yamane are threatening a class action lawsuit after the broker refused to repay a £22m loan due in three days.

Loan notes were issued to employees of rival broker Marshalls to finance its acquisition by Prebon in 1999. Employees, some of whom still work at Prebon, hold 70% of the loans.

The remaining 30% is owed to BT, which is determined that the investment should be repaid. But it is not known if it will take part in the action.

Research boutique Hardman & Co, led by Roger Hardman, is lobbying the holders of the loan notes to act.

Hardman said: 'We were contacted by holders of the loan notes to see if we could help them. There are about 700 holders and we are trying to gauge the feeling.'

Privately owned Prebon, which lost £913,000 in the year to March 2002, claims it does not have to repay the loan if, as a result, the company becomes insolvent.