BCS - BrisConnections Unit Trusts

[tigerboi]

Re: THEY WILL GO BANKRUPT LIKE THE SYDNEY TUNNEL

I recall the Sydney Harbour Bridge (excluding Tunnel) was about 300,000 cars a day.

5 days a week = 1.5 million cars...actual figures(795,000)

52 weeks a year = 78 million cars.(41.34m)

10 years = 780 million cars.(413.40m)

Not far from your 1b figure.(long way from a bil,so using these figures as a guide i predict the brisbane project will not break even in 20 years)

That doesn't even count the weekends, which although nothing like 300,000 a day, would add something. I have no idea how long they have the tolling rights for, but 20 years, and they stand to make a nice tidy profit.

not in the same ball park comparing it to the harbour bridge.anyhow traffic in 2001 was 159,597...dont know where you got 300,000 from?see the link provided...http://www.sydneyharbourbridge.info/

I would imagine Sydney has far greater traffic than Brisbane.

so 13,400 required just to recoup the original investment?,just as i thought there is no way this will break even.very poor investment in my view more so when you consider what the rta did to the cross city tunnel.

just confirms that you must do your homework if your putting your own coin into this type of set up.


seems like one giant gouge off unsuspecting punters,how many shares were issued at the ipo?

im still baffled how anyone could think a $4.8b tunnel could make money in brisbane?

i see leightons & mac bank put it together,well it cant be going on wages as wal king is on record as wanting overseas scab indentured labour for his companies projects.

what a farce,wonder how many shifty backhanders have been served up?

 

[Sir Osisofliver]

Re: Brisconnections shareholders - financial ruin

http://business.smh.com.au/business/brisconnections-shareholder-revolts-20090217-89v8.html

LOl so what exactly did the board think, he was just gonna bend over and let then take every cent he had without a fight?

Sir O

 

[sails]

Re: Brisconnections shareholders - financial ruin

Shine, I too am another scared investor. I am unsure how to proceed other than getting my own legal advice, which does not appear to look promising.

Any suggestions or others in the same boat? If you don't want to post anything, PM me instead.

Shine and Nervous - here's a link to Dondi's lastest post - he said he was involved in the action group. https://www.aussiestockforums.com/forums/showthread.php?p=385734#post385734. He has an email address in there or you could send him a private message. Just left click on the user name found on the left hand side of the post and you will see a link to click on for private message.

While Dondi was criticized for using a gmail address, I'm assuming he didn't want to put his own on a public forum due to spamming issues, so I wouldn't be put off by that.

You might also want to contact some of the others caught up in this: rocket12, Bushie and thermalmonster, so you could try searching for their user names in this thread and sending them a private message as well. Rocket12 was very involved originally in the action group and was working together with the ASA - here is the last post of his that I can find in this thread: https://www.aussiestockforums.com/forums/showthread.php?p=379708#post379708. However, I would suggest sending a quick PM off to all of them. They were looking for as many as possible to group together. Those affected have gone very quiet lately, so perhaps they are working on a solution.

If you can't make contact, perhaps try the ASA (Australian Share Assoc.)

Sincerely wishing you all the best and hopefully there will be a positive outcome.

 

[investorpaul]

Re: Brisconnections shareholders - financial ruin

http://business.smh.com.au/business/...0217-89v8.html

In the article it says that unit holders would still be required to make the payment even if the trust was round up???

But if they sell their units to this guy then, they are no longer unit holders???

 

[bigdog]

Re: Brisconnections shareholders - financial ruin

SHH article today
http://business.smh.com.au/business/brisconnections-shareholder-revolts-20090217-89v8.html

BrisConnections shareholder revolts
Mark Hawthorne
February 17, 2009 - 1:16PM

A Melbourne IT company owner who last year emerged as the biggest shareholder in Brisbane tollroad builder BrisConnections has called an extraordinary general meeting to wind up the company's trusts, in an attempt to avoid paying $94 million in part-payments he owes on the shares he owns.

The move has thrown the future of Brisbane's $4.8 billion Airport Link, Northern Busway (Windsor to Kedron) and Airport Roundabout Upgrade projects into doubt.

There are 1100 people employed on the toll road projects now, with 2500 jobs to be created in total.

There's little doubt that BrisConnections is top contender for the title of worst float in Australian corporate history.

The company now has a market cap of just over $300,000, and a $500 investment in the company's 0.1 unit trusts bring with it a further $1 million of debt - in two $1 instalments that are yet to be paid.

Nick Bolton, the 26-year-old from St Kilda who scooped up 47.6 million BrisConnections shares just before Christmas for a $47,600 outlay, has learned the hard way. He is now liable to pay $94 million as a result of his punt.

Bolton's private company Australian Style Investments Pty Ltd is a substantial unit holder in BrisConnections, with a 12.28% stake (47,923,166 units). All but 280,000 of these units were bought via Westpac Securities on November 24 last year, 2008 when the units were trading at .01 each.

The additional 280,000 units were purchased off market last week.

Bolton's move to wind-up the company was announced to the market this morning, after documents were lodged on Thursday, and have met with an angry response from the company's board.

BrisConnections chairman Trevor Rowe described the move to call a meeting to vote on winding up the trusts as ''a misguided and ineffective attempt to avoid its future obligations to BrisConnections''.

In order to have Brisconnections' trusts wound-up, Bolton will need 75% of the vote.

According to Rowe, unitholders will still be liable to pay the two further $1 instalments, even if Bolton is successful at the EGM.

''BrisConnections is very concerned that unit holders may misunderstand the impact of a winding up on the liability of unit holders,'' Rowe said.

''Winding up the trusts will not remove the obligation on unit holders to pay the outstanding amounts on their units including the next $1 instalment that will be called on 2 March, 2009. Regardless of the outcome of the meeting, unit holders will remain liable.

''Clearly, this proposal is not in the best interests of all unit holders and will be vigorously opposed by BrisConnections directors. In the event of the winding up proceeding BrisConnections would have no alternative but to cease trading which would leave unit holders in the position of still needing to contribute additional amounts into an entity which can never generate income.

''The consequences of winding up BrisConnections would result in complete destruction of future unit holder value,'' Mr Rowe stated.

mhawthorne@theage.com.au

 

[nomore4s]

Re: Brisconnections shareholders - financial ruin

In the article it says that unit holders would still be required to make the payment even if the trust was round up???

But if they sell their units to this guy then, they are no longer unit holders???

I only had a quick look at the article but I don't think they sell the shares to him only vote with him to shut down the trusts - he needs 75% of the votes I think, be interesting to see if he gets it.

If he does it says alot about how many people/shareholders have got caught up in this mess without fully understanding what they were getting into.

Surely he must have some sort of legal advice that if he can shut down the trusts he may be able to get out of the next installment? Or maybe it becomes easier to stall or put off the payment?
People could end up voting with him in the hope they can get out of it.

 

[Prospector]

Re: Brisconnections shareholders - financial ruin

Dondi = Bolton

 

[Sir Osisofliver]

Re: Brisconnections shareholders - financial ruin

In the article it says that unit holders would still be required to make the payment even if the trust was round up???

Well that is Trevor Rowe's contention. Of course this may be accurate depending upon how heavily the first installment has been geared and what the conditions of the lending agreement are.

EG 330 Million *3 DOES NOT EQUAL 4.8 BILLION dollars. So a significant level of gearing has to occur. Depending upon what the lending agreement between Brisconnections and the consortium of banks that are being used to fund the difference is, will determine what level of exposure the current shareholders have. There is a question however whether this lending agreement can be challenged becuase I assume that Nick Bolton's lawyers would have told him that already, and they must think it has a chance.

Remember what I said a long time ago however - These infrastructure plays are designed to get to the end of construction with a small pool of money left over to tide them over until traffic on the road ramps up and they start getting revenue. If the company is spending large amounts of money defending itself against actions, that makes the pool that much smaller (and eventually the whole proposition untenable). Bolton may merely be attempting to bury the company in court actions - (Because the management cannot continue to run the business if they know it will run at a loss).

But if they sell their units to this guy then, they are no longer unit holders???

He's not offering to Buy your shares...he just wants your vote.

Sir O

 

[investorpaul]

Re: Brisconnections shareholders - financial ruin

Well that is Trevor Rowe's contention. Of course this may be accurate depending upon how heavily the first installment has been geared and what the conditions of the lending agreement are.

EG 330 Million *3 DOES NOT EQUAL 4.8 BILLION dollars. So a significant level of gearing has to occur. Depending upon what the lending agreement between Brisconnections and the consortium of banks that are being used to fund the difference is, will determine what level of exposure the current shareholders have. There is a question however whether this lending agreement can be challenged becuase I assume that Nick Bolton's lawyers would have told him that already, and they must think it has a chance.

Remember what I said a long time ago however - These infrastructure plays are designed to get to the end of construction with a small pool of money left over to tide them over until traffic on the road ramps up and they start getting revenue. If the company is spending large amounts of money defending itself against actions, that makes the pool that much smaller (and eventually the whole proposition untenable). Bolton may merely be attempting to bury the company in court actions - (Because the management cannot continue to run the business if they know it will run at a loss).




He's not offering to Buy your shares...he just wants your vote.

Sir O

Sorry, must have misread the article. I guess if you are a brisconnection shareholder you take any chance you can get.

If this issue forces them to concede defeat or he is able to pull the vote off then good on him, there sure are a lot of people who would be riding on this little ray of hope.

 

[bigdog]

Re: Brisconnections shareholders - financial ruin

Bolton's private company Australian Style Investments Pty Ltd is a substantial unit holder in BrisConnections, with a 12.28% stake (47,923,166 units). He is now liable to pay $94 million as a result of his punt.

I assume that Bolton's private company has limited liability and would be wound up before parting with the $94 million.

 

[investorpaul]

Re: Brisconnections shareholders - financial ruin

Bolton's private company Australian Style Investments Pty Ltd is a substantial unit holder in BrisConnections, with a 12.28% stake (47,923,166 units). He is now liable to pay $94 million as a result of his punt.

I assume that Bolton's private company has limited liability and would be wound up before parting with the $94 million.

Hopefully its only asset is the brisconnection shares. If not why not just buy the whole company

 

[tigerboi]

Re:raise $1b(so far only $330m) borrow $3.8b.wtf?

just see if i get this...briscon issue 330m shares firstly at $1 with 2x$1 instalments to follow to get them $1b?

then they borrow $3.8b for the rest.so thats a gearing of 380%...3.8 times what was raised?when i said this would go broke i thought all the money had been raised through the ipo?

sorry but what numnuts would buy a stock with this gearing?

$330m dont get you much road,so there is no way the tunnel will be built.not a chance this will go ahead with all the money owed.

the guy with 12% could be calling their bluff with intentions to sell them back(to briscon) at a monster profit.sounds like a mexican stand off to me.

 

[Absolutely]

Re: Brisconnections shareholders - financial ruin

''BrisConnections is very concerned that unit holders may misunderstand the impact of a winding up on the liability of unit holders,'' Rowe said.

This bit makes me laugh.

Brisconnections should have been "very concerned that unit holders may misunderstand" what they were getting themselves in to by buying these shares in the first place, and taking effective measures THEN to properly inform shareholders of their potential liabilities before they incurred them. Then maybe Trevor wouldn't be in this mess.

 

[drsmith]

Re: raise $1b(so far only $330m) borrow $3.8b.wtf?

the guy with 12% could be calling their bluff with intentions to sell them back(to briscon) at a monster profit.sounds like a mexican stand off to me.

If that is the case I don't fancy his chances.

About 20% of the company is currently on the block for $0.001.

 

[bigdog]

Re: Brisconnections shareholders - financial ruin

http://business.smh.com.au/business/bell-tolls-for-brisconnections-20081126-6irk.html
Bell tolls for Brisconnections
Scott Rochfort
November 27, 2008

BRISCONNECTIONS has played down speculation that its underwriters, Macquarie Capital Advisers and Deutsche Bank, could eventually seek to delist or buyout the hapless toll-road group, amid signs that the company's plans to raise a further $817 million from its security holders have gone off the rails.

The emergence of a second retail investor with a substantial stake in Brisconnections has fuelled expectations that Macquarie and Deutsche could end up having to fund the bulk of Brisconnections' next two instalments in April and early 2010.

On Tuesday night, the Melbourne internet domain name company Australian Style Investments, run by Nicholas Bolton, disclosed that it had taken a 12.2 per cent stake in Brisconnections for $47,643, or 0.1 cent per security. This makes Mr Bolton's company the group's largest shareholder.

Mr Bolton failed to return the Herald's calls yesterday to explain whether he understood his company was obliged to stump up an extra $95 million or $2 per security, for the next two instalments in the company.

"We would hope he would have done his homework and sought some independent advice prior to his investment," a Brisconnections spokesman said.

Mr Bolton's emergence as a substantial shareholder comes a fortnight after a Melbourne woman, Fang He, picked up a 8.26 per cent stake in the group, obliging her to cough up $65 million on top of her initial $32,000 outlay.

When it was floated in July, 88 per cent of Brisconnections was held by institutional shareholders. It is now believed that figure is hovering around 25 per cent, with the catastrophic fall in the company's first instalment from $1 to 0.1 cent allowing retail investors to buy large stakes in the company relatively cheaply.

If retail shareholders fail to stump up the cash for the next two instalments, Macquarie and Deutsche could end up owning about 70 per cent of the group.

It is speculated that, in order to avoid further embarrassment, Macquarie could seek to buy out and delist the toll-road group in partnership with the remaining institutional shareholders, the largest being the Queensland Investment Corporation.

Brisconnections, however, said "there were no plans afoot" to avoid the listing of its second instalment in April, which could involve debt collectors reminding retail investors of their obligations.

"Any talk on that is just pure speculation at this stage," a spokesman said.

Despite the huge embarrassment generated from the Brisconnections listing, one consolation for its advisers is the $86 million in underwriting fees.

 

[tigerboi]

Re: raise $1b(so far only $330m) borrow $3.8b.wtf?

If that is the case I don't fancy his chances.

About 20% of the company is currently on the block for $0.001.

off market off course...no buyers anyway,but reckon this guy is trying to pull a swifty as he could hold the company to ransom with his stake.

thats my take on it anyway.(buy my shares or i will pull the plug?)

 

[White_Knight]

Re: Brisconnections shareholders - financial ruin

A little bit of background.

I am a young man, early 20's with no dependents or financial liabilities. I have about 30,000 saved up in cash and share investments. I have no holding company structure though.

What would be the possible ramifications of splashing some cash on a decent stake in Brisconnections? Looking at the market depth now there are 79million shares for sale at 0.01c, and i assume more could be obtained at that price.

The risks of the venture are no doubt colossal but what is the potential for profit on the upside? Including banding together with other minority retail holders (eg Mr Bolton) and trying to put the squeeze on MQC and the company.

 

[prawn_86]

Re: Brisconnections shareholders - financial ruin

White Knight,

There are some holders on this site which would probably PAY YOU to take them off your hands, plus you could buy the rest on market with your 30k.

Who knows what could happen, perhaps you should contact Mr Bolton. But ultimately if you do go through with it you should be prepared to file for bankruptcy in worst case scenario, and all the restrictions etc that go along with that (IE - hard to get a home loan etc). Also, by posting what you just have, you have admitted to knowing about it, so couldnt claim that you were unaware, if there ever is any court action.

Potential upside is not calculable, hence why the shares are trading at .001

 

[skc]

Re: Brisconnections shareholders - financial ruin

A little bit of background.

I am a young man, early 20's with no dependents or financial liabilities. I have about 30,000 saved up in cash and share investments. I have no holding company structure though.

What would be the possible ramifications of splashing some cash on a decent stake in Brisconnections? Looking at the market depth now there are 79million shares for sale at 0.01c, and i assume more could be obtained at that price.

The risks of the venture are no doubt colossal but what is the potential for profit on the upside? Including banding together with other minority retail holders (eg Mr Bolton) and trying to put the squeeze on MQC and the company.

Can you explain where this idea comes from? Where do you see a hint of potential upside? Let's say the trust unwinds, the tunnel doesn't get built, the installment receipts become wall paper and no body sues no body. Still, where is the upside for you?

Sure, for those who have already bought in, they have some chances of not being in financial ruin. But for a new investor to jump in now? You will have to pray for that the tunnel construction crew hits oil or something before you see any upside. Use your $30K to buy a 100 inch LCD or put it on red at the casino are some of the wiser things you should consider.

 

[tigerboi]

Re:bolton is no fool

Well i think sorry i know this guy is a smart operator so id say hes got some good info on the underwriters chances of buying out & delisting.

$47k to this guy is a small amount to risk versus the reward.did he buy on market?

im going to email him to see what the go is?