BCS - BrisConnections Unit Trusts

[drsmith]

Re: Someone is accumulating BCSCA

Dont ASIC know the answer to that question?

I thought it would require at least 75% being a "special resolution" rather than an "extraordinary resolution"

It appears the type of resolution is the arguing point.

Mr Bolton said the voting requirement to pass the wind-up resolution was unclear.

ASIC, he said, was contending that the Corporations Act required an extraordinary resolution, or the approval of at least 50 per cent of investors eligible to vote, while the BrisConnections constitution called for a special resolution.

http://www.theaustralian.news.com.au/business/story/0,28124,25285714-36418,00.html

 

[cuttlefish]

Re: Someone is accumulating BCSCA

Assets flow from the lazy or incompetent to the industrious or smart.

You have assets don't you Garpal? Guess its the exception that proves the rule.

 

[freddy2]

Re: Someone is accumulating BCSCA

Assets flow from the lazy or incompetent to the industrious or smart.

I'm sure many fraudsters and conmen rationalise their actions this way.

 

[awg]

Re: Someone is accumulating BCSCA

Except GG, the BCSCA has been a unique 'five letter' share. Never seen anything like it.

i reckon TLSCA would have led to a degree of compacency by some buyers?

 

[drsmith]

Re: Someone is accumulating BCSCA

The following interview between Rob Ferguson (chariman of the legal firm IMF) and Alan Kohler on ABC's Inside Business may be of interest. In it Rob Ferguson suggests that BCSCA might be worth around minus $1.50 per share.

http://www.abc.net.au/insidebusiness/content/2009/s2535204.htm

 

[roofa]

Re: Someone is accumulating BCSCA

Just gone into trading halt.
????

 

[investorpaul]

Re: Someone is accumulating BCSCA

The announcement says that they are in a trading halt to stop people selling their shares on the mistaken belief that doing so would remove the liability???

How is that meant to work? If you sell on market you cant possibly be made to pay the installment.

BCSCA also say that a trading halt is necessary to stop "market disruption" a bit late, it cant go any lower.

 

[Absolutely]

Re: Someone is accumulating BCSCA

The announcement says that they are in a trading halt to stop people selling their shares on the mistaken belief that doing so would remove the liability???

How is that meant to work? If you sell on market you cant possibly be made to pay the installment.

BCSCA also say that a trading halt is necessary to stop "market disruption" a bit late, it cant go any lower.

These blokes have completely lost the plot.

 

[Prospector]

Re: Someone is accumulating BCSCA

So are BCSCA trying to imply that even selling shares on the open market wont remove people from the liability? How can the ASX let them halt trading now when it did nothing when this was all unfolding. Too damn late!

 

[investorpaul]

Re: Someone is accumulating BCSCA

there is a real risk that some unitholders who may not intend to meet the second installment may attempt to trade their stapled units mistakenly believing that this enables them to escape the obligation to pay the second installment due on 29 April

That is a quote from the ASX release. I read it as saying selling your shares on through the ASX would not remove the liability. Therefore they have been placed in a trading halt to stop last ditched attempts by unitholders to offload stock.

How do others interpret it?

 

[sails]

Re: Someone is accumulating BCSCA

So are BCSCA trying to imply that even selling shares on the open market wont remove people from the liability? How can the ASX let them halt trading now when it did nothing when this was all unfolding. Too damn late!

Seems like the rules are being changed on the run. Perhaps it has something to do with the meeting Bolton apparently had with Rowe: http://business.brisbanetimes.com.a...cret-meeting-with-chairman-20090403-9rn1.html

If selling on the open market doesn't remove the liability - then perhaps the same logic could apply to the the mums and dads who bought them on the open market.

 

[sails]

Re: Someone is accumulating BCSCA

That is a quote from the ASX release. I read it as saying selling your shares on through the ASX would not remove the liability. Therefore they have been placed in a trading halt to stop last ditched attempts by unitholders to offload stock.

How do others interpret it?

Nothing makes much sense . Here is an article titled "Good news for BrisConnections investors" http://news.theage.com.au/breaking-...-brisconnections-investors-20090406-9tia.html

 

[steve999]

Re: Someone is accumulating BCSCA

If selling on the open market doesn't remove the liability - then perhaps the same logic could apply to the the mums and dads who bought them on the open market.

If selling the share doesn't remove the liability, then wtf?
I thought they were stapled securities? The liability and the share go together... Sounds like a "miscommunication" to me. How could the ASX ever list partially paid shares again if that could happen?

 

[alphaman]

Re: Someone is accumulating BCSCA

How can the ASX let them halt trading now when it did nothing when this was all unfolding.

Trevor Rowe is a director of ASX.

 

[sails]

Re: Someone is accumulating BCSCA

Here is another article titled "BrisConnections: underwriter seeking payment deal": http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSYD46077020090406

BrisConnections said on Monday it has received material information from one of its underwriters regarding a potential approach towards unitholders and their obligations to pay instalments.

 

[Prospector]

Re: Someone is accumulating BCSCA

I think the halt is only about the timing of when you sell the Units. You need to have sold them before the cut-off date; something to do with the delayed settlement basis. They will stop trading just before that date so the shares are not in limbo when the cut-off date occurs.

 

[drsmith]

Re: Someone is accumulating BCSCA

Re-suspension of BCSCA till April 8

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSYD46077020090406

Will Macquarie buy existing unitholders out for a token price ?

 

[Absolutely]

Re: Someone is accumulating BCSCA

Trevor Rowe is a director of ASX.

Conflict of interest??

 

[Sunder]

Re: Someone is accumulating BCSCA

Sunder,

According to your arguments, it would be illegal to sell to MQG's $2 company because that entity is known to not have the assets required.
brty

I don't think Sunder wants to talk about that - but if he does, it will be interesting to see if he justifies something that he might otherwise consider fraudulent.

Sorry, lost this thread for a few days. A lot to catch up on.

In answer to your question, not the same scenario.

1. Macquarie bought directly from the official ASX market - arms length transaction.

2. Macquarie has not made any indication as to whether it will provide that $2 shelf company with sufficient funds to pay their liabilities. No indication that even if you were directly selling to them, that they were intending to default.

3. If they defaulted, they're paying the bill anyway.

Anyway, lots of reading to do. I'm behind on what's been happening the last couple days.

 

[Sunder]

Re: Someone is accumulating BCSCA

So are BCSCA trying to imply that even selling shares on the open market wont remove people from the liability? How can the ASX let them halt trading now when it did nothing when this was all unfolding. Too damn late!

For people who don't know, it's not who's holding the hot potato on the PAYMENT date that matters, it's who's holding the hot potato on the DETERMINATION date...

Determination date was meant to be April 21st. Was it moved forward?