BCS - BrisConnections Unit Trusts

[Sunder]

Re: Brisconnections shareholders - financial ruin

Another four hundred grand down the drain.
That would have paid for at least half a metre of the Brisconnections Golden Carriageway.

It does appear at this point that if he's going down, he's taking as much down as possible with him.

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

This article on the first day in court seems to think he has a way out. There is a bit in there to digest.

 

[prawn_86]

Re: Brisconnections shareholders - financial ruin

I feel sorry for all holders caught up in it, but boy is it intersting watching from the sidelines

 

[nomore4s]

Re: Brisconnections shareholders - financial ruin

What I don't really understand is why Brisconnections haven't done more to try and resolve he problem with some of the retail shareholders caught up in this mess, they are carrying on a bit like @rses if you ask me.
ATM it is a no win situation for both parties imo - retail investor will be declared bankrupt and BC won't get the money as these shareholders will never be able to pay the debt. I realise that the shares are underwritten or whatever but someone isn't going to be paid and be out of pocket millions of dollars.

Good on Bolton imo, he has really got nothing to lose he may as well try everything possible to save as much as he can.

 

[investorpaul]

Re: Brisconnections shareholders - financial ruin

Has any more info come to light on Bolton as to why he did it?

Obviously he has protected his other assets in some way, otherwise he too would face financial ruin.

 

[clayton4115]

Re: Brisconnections shareholders - financial ruin

"I realise that the shares are underwritten or whatever but someone isn't going to be paid and be out of pocket millions of dollars."


yeah MQG have underwritten so they going to be out of pocket million of dollars. Their SP is heading to $10 and its not a good sign for MQG!

 

[Sunder]

Re: Brisconnections shareholders - financial ruin

What I don't really understand is why Brisconnections haven't done more to try and resolve he problem with some of the retail shareholders caught up in this mess, they are carrying on a bit like @rses if you ask me.
ATM it is a no win situation for both parties imo -

I think this is why so many people are cheering for Bolton. They see this as a lose/lose situation, and Bolton is doing something about it. It's not. It's lose/win. If the retail shareholders lose, BCSCA win by getting millions off Macquarie.

If BCSCA negotiate a settlement plan which Macquarie says is not "Best Endeavours", BCSCA doesn't get the money, and doesn't finish the road. The losers in the end are the Queensland public.

It may be that in the privacy of his own home, Rowe is hoping Bolton will succeed, so he can take the easy path of going to Macquarie - "We sued ASI to the grave and got nothing. You're the underwriter, do something." But in public, he can do nothing except play the standover guy.

From the article posted, it appears that the judge recognises that the business transactions are a scam - but isn't willing yet to say that they are fraudulent and criminal.

Will be interesting to see what happens.

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

From the article linked by Enzyme
theage.com.au
Business Day
6 March, 2009

"Bolton, who initially bought 47 million BrisConnections unit trusts for $47,000 in November, picked up $94 million of debt. He now controls 70 million shares, or 18.4 per cent of the company, after offering several unit holders a $1305 fee to transfer shares off market into his name."

That journo should do some research and read this ASF Thread. In which case he would have know that Bolton did not offer a "$1305 fee", but rather charged a $1305 fee to take ownership of the donated shares.

 

[mikeyfinn111]

Re: Brisconnections shareholders - financial ruin

That journo should do some research and read this ASF Thread. In which case he would have know that Bolton did not offer a "$1305 fee", but rather charged a $1305 fee to take ownership of the donated shares.[/QUOTE]

Is there a difference?

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

That journo should do some research and read this ASF Thread. In which case he would have know that Bolton did not offer a "$1305 fee", but rather charged a $1305 fee to take ownership of the donated shares.

Is there a difference?

Probably no, bit the statement was wrong.

It gives an impression that a "consideration" was paid for the shares aquired by Bolton, when in fact the shares were donated to Bolton and the "donors" paid for that privilege.

 

[solo6005]

Re: Brisconnections shareholders - financial ruin

What if I does pay $1.00 installment for every shares I have to BCS , and it ended up company winding-up?

If the company winding up, what will happen to the whole project ? there are 600+ workers currently on the project i guess.

Standard operating procedure for big companies, bankrupt the small guy with court/lawyer fees even if the lawsuits have zero chance of succeeding.

Mr Bolton could arguably ask the courts to wind up Brisconnections under the same act, in particular Sect461(1e,1f).

CORPORATIONS ACT 2001 - SECT 461

(1) The Court may order the winding up of a company if:

(e) directors have acted in affairs of the company in their own interests rather than in the interests of the members as a whole, or in any other manner whatsoever that appears to be unfair or unjust to other members; or

(f) affairs of the company are being conducted in a manner that is oppressive or unfairly prejudicial to, or unfairly discriminatory against, a member or members or in a manner that is contrary to the interests of the members as a whole; or

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

What if I does pay $1.00 installment for every shares I have to BCS , and it ended up company winding-up?

If the company winding up, what will happen to the whole project ? there are 600+ workers currently on the project i guess.

My read would be to not pay the $1.00 instalment until after you know if BCS will be wound up.

If Bolton wins and winds up the company the road will not be built and the workers will be out of jobs. In the current climate I can't see a private investor stepping in to rescue the project. If the government doesn't step in the project will be dead.

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

I see that another eight investors have donated Bolton another 5 million shares: link

Those transfers are all over a month old.

 

[drsmith]

Re: Brisconnections shareholders - financial ruin

If Bolton wins and winds up the company the road will not be built and the workers will be out of jobs. In the current climate I can't see a private investor stepping in to rescue the project. If the government doesn't step in the project will be dead.

If the trust is wound up what's to stop the underwriters providing the instalment cash to complete the project? They will most likely be up for most of it in any case.

That being said if the underwriters could get the Queensland Government to throw a bit (or all of it) into the tin I'm sure they wouldn't complain.

 

[shaunQ]

Re: Brisconnections shareholders - financial ruin

I see that another eight investors have donated Bolton another 5 million shares: link

Those transfers are all over a month old.

Was just reading the Extraordinary meeting document on ASX - this paragraph caught my attention

The market price of Units is determined by the market and is not controlled or determined by BrisConnections. Irrespective of the price set by the market, it is possible for investors to trade their Units to willing buyers on or off market, or accept an offer or other proposal should one be forthcoming. The board notes that ASI itself has proven a very active aquirer of Units. If the resolution is passed, then there will likely no value whatsoever in the Units, even though the liability to pay the next two installments of $1.00 remains, and no opportunity to trade or accept any potential proposals.

http://www.asx.com.au/asxpdf/20090305/pdf/31gg0s3bclvd43.pdf

So. a) Its a bit deceptive implying there are willing investors on and off market. b) They try and use ASI's purchases against him c) They are explicitly saying that Unit holders can accept any deal or proposal to extinguish their ownership and liability.

 

[Julia]

Re: Brisconnections shareholders - financial ruin

If the trust is wound up what's to stop the underwriters providing the instalment cash to complete the project? They will most likely be up for most of it in any case.

That being said if the underwriters could get the Queensland Government to throw a bit (or all of it) into the tin I'm sure they wouldn't complain.

I can't see why the Qld government would pay anything when Maquarie and Deutsche have underwritten the project.
They are busy enough finding sufficient dollars to fund their election promises at the moment.

 

[drsmith]

Re: Brisconnections shareholders - financial ruin

They wouldn't for sure but what if the situation arose where it was a choice (politically) between a half finished major road project and the instalment dollars to complete it.

 

[Julia]

Re: Brisconnections shareholders - financial ruin

They wouldn't for sure but what if the situation arose where it was a choice (politically) between a half finished major road project and the instalment dollars to complete it.

dr, that still ignores Maquarie & Deutsche's responsibility to come up with the necessary funds in terms of the underwriting agreement. Perhaps I'm missing something, but I can't see why the Qld govt would have any obligation in this mess.

 

[drsmith]

Re: Brisconnections shareholders - financial ruin

I'm not saying that the QLD government has an obligation but who knows what gremlins the winding up of the trust would throw into the mix.

I was just suggesting that if the underwriters could find a way to pressure the government (either legally or politically) to chip in in the event of a winding up then I suspect they would go for it.

 

[brty]

Re: Brisconnections shareholders - financial ruin

Hi,

Why wouldn't Macquarie vote to wind up the company??
By doing so it could get them off the hook for having to underwrite the rest of the project. By voting for the continuation, all that is going to happen is a lot of small players are going to the wall and then Macquarie have to pay anyway.

Rowe may be saying anything he can against the winding up, but why would the underwriters be against it?? I'm assuming Macquarie aren't stupid enough to assume liability if the company folds in the original contracts.

This is indeed fascinating as it unfolds, and pretty much unprecedented in Australia's corporate history.

brty