BCS - BrisConnections Unit Trusts

[nth brisbanite]

$50k for $4.5M, nice trade

Not a nice trade at all. Just a "double cross" to all those who were naive enough to believe in him. I wonder whether he'll be able to sleep at night.

 

[skc]

$50k for $4.5M, nice trade

He has had a full legal team working for him for some time. A QC isn't cheap so I reckon he's got costs north of $1m. It's still a nice trade, but the risk-reward was probably closer to 1:4.

The risk of complete loss was quite high, as LEI really didn't have to pay him for his proxies, esp. after Mac bought the 8%. The wind-up resolution was never going to go through.

As if, he was going to attend the meeting?

Macquarie/Brisconnections did create the mess in the first place, BUT Bolton made an undertaking to vote for the wind up of the company/trust. He asked all unit holders to vote for the wind up and then did the opposite himself. This is a very low act.

I agree. It is a smart but unconscionable move. He may have to pay for it one way or another. Retail shareholders may sue him for deceptive behaviour, or someone may greet him in a dark alley with a sledge hammer!

 

[steve999]

Bolton made an undertaking to vote for the wind up of the company/trust. He asked all unit holders to vote for the wind up and then did the opposite himself. This is a very low act.

I'm not supporting Bolton's move at all. But then again, we have no idea what the final outcome is going to be regarding retail investors so I'll wait until then...

Also, given the number of shares that had been for sale, there was nothing stopping any of the other investors (or anybody else) from buying them all up and doing the same thing, or perhaps something a bit less underhanded.

How it ever got to the position that one random person could own such a large part of what is supposedly an enormous project is the bigger problem.d

 

[steve999]

Retail shareholders may sue him for deceptive behaviour, or someone may greet him in a dark alley with a sledge hammer!

This is the bit I have a problem with. Even if Bolton is laughing at the retail shareholders etc then I still think people should be going after those higher up the chain. Bolton is just an easy target because it is always easier to hate an individual rather than a company. If we blame Macquarie or Comsec for example, which specific person do we sledge hammer? It's too hard so it's easier to blame Bolton.

 

[robots]

hello,

should be some carnage at this joint if all the anti-capitalists are true to the cause:

http://www.bcsunitholders.com.au/contact_us.php

Queens St

thankyou
robots

 

[Struzball]

I don't understand the hostility.

The retail investors found themselves stuck owing $500,000+
Bolton offered to everyone he will take their liability off their hands. He did this.

Then he created the vote, he chose to essentially vote as if he hadn't done anything in the first place.

So basically, Bolton has saved the asses of countless people who would be bankrupt by the time of payment, (and made a small fortune in the mean time).

What exactly has he done to make anythign worse for anyone if he never popped his head up in the first place??

Once again, it's Brisconnections that created a company designed to fail to lure in people who couldn't afford repayments and continue trading on the ASX with no concern for more people getting sucked into their scam.

 

[Macquack]

hello,

should be some carnage at this joint if all the anti-capitalists are true to the cause:

http://www.bcsunitholders.com.au/contact_us.php

Queens St

thankyou
robots

robots, being a neighbour of Nick "did the bolt" Bolton down there in St Kilda, have you noticed if he has any security guards posted at his Fitzroy Street office/cell.

 

[drsmith]

With regard to whether or not Bolton has actually sold the units or just the voting rights, the ABC's 7:30 report was explicit in stating that he still faced the upcoming instalment liability along with 900 other unitholders.

The link to the program segment is below but at the time of writing the transcript was not yet available.

http://www.abc.net.au/7.30/content/2009/s2542856.htm

 

[Julia]

Also, this story has been mysteriously quiet on the main media. I don't think it's ever been headline news on the TV despite it possibly being a journalists dream story. Have the media been told to keep it steady? Something we may never know. I expect the meeting today might trigger a bit more interest - only time will tell.

Sails, it has been on every ABC Radio news bulletin throughout today plus a couple of times yesterday. Also a detailed report on both "The World Today" and "PM" current affairs programme today.
Then the 7.30 Report did an item on it this evening.

 

[MeToo]

Bolton must have sold his units to LEI, or else LEI wouldn't lodge a substantial holder's notice.

But question remain, why didn't LEI just purchase on market, as it would be cheaper, unless it saw Bolton as being the main problem and bought him out.

By the way Bolton ASI did not make offers to everyone to take liability off their hands as stated by Struzball. But he did ask for their proxy.

 

[Julia]

With regard to whether or not Bolton has actually sold the units or just the voting rights, the ABC's 7:30 report was explicit in stating that he still faced the upcoming instalment liability along with 900 other unitholders.

The link to the program segment is below but at the time of writing the transcript was not yet available.

http://www.abc.net.au/7.30/content/2009/s2542856.htm

Yep, that was my understanding also. He must have some further moves to make.

I do feel for any remaining retail investors who must be feeling they are living in an endless nightmare.

 

[sails]

Sails, it has been on every ABC Radio news bulletin throughout today plus a couple of times yesterday. Also a detailed report on both "The World Today" and "PM" current affairs programme today.
Then the 7.30 Report did an item on it this evening.

Yes, it's been on business affairs, newspapers and on radio, but doesn't seem to be getting prime time TV too much. I haven't seen it on the main evening news until today, and even then, it was just a short clip. Whenever I have mentioned it to non-trading friends, they have been totally unaware of it. The media are obviously aware of what is happening and are capable of creating quite a dramatic story for the remaining unit holders, but for whatever reason, they seem to be choosing not to at this stage.

 

[Nyden]

I don't understand the hostility.

The retail investors found themselves stuck owing $500,000+
Bolton offered to everyone he will take their liability off their hands. He did this.

Then he created the vote, he chose to essentially vote as if he hadn't done anything in the first place.

So basically, Bolton has saved the asses of countless people who would be bankrupt by the time of payment, (and made a small fortune in the mean time).

What exactly has he done to make anythign worse for anyone if he never popped his head up in the first place??

Once again, it's Brisconnections that created a company designed to fail to lure in people who couldn't afford repayments and continue trading on the ASX with no concern for more people getting sucked into their scam.

Didn't unit holders give him their proxy with the agreement that he would vote for his own resolutions? The whole reason he had this 'power' to sell, was because he fooled people into giving up their voting rights!

This whole thing is just a mess, honestly; just wind it up and be done with it.

 

[drsmith]

Bolton must have sold his units to LEI, or else LEI wouldn't lodge a substantial holder's notice.

But question remain, why didn't LEI just purchase on market, as it would be cheaper, unless it saw Bolton as being the main problem and bought him out.

I would agree although it's not absolutely explicit in the conditions of the notice (this was discussed earlier today in this thread). The media in general seem to think otherwise however.

LEI's other media reliease (Thiess John Holland act to secure at least 10000 jobs) only states that Thiess John Holland appached ASI last Wednesday to secure it's proxies for the meeting.

Hopefully more details will emerge tomorrow.

Yep, that was my understanding also. He must have some further moves to make.

I do feel for any remaining retail investors who must be feeling they are living in an endless nightmare.

I still think that in the end retail unitholders will be let off the hook. Plenty of sleepless nights in the meantime for them though, unfortunately.

 

[yttrium]

I still think that in the end retail unitholders will be let off the hook. Plenty of sleepless nights in the meantime for them though, unfortunately.

Zachary

If there is one lesson from Mr Bolton, surely it is that we have to make our own escape and not rely on the benevolence of others. Jumping off the train might seem daunting, but is the destination any better?

If you own these things on the 29th, the liability is yours. Thankfully, the dilemma is not mine, but I still think that Brisconnections should respond to Justice Robson's judgement as it may be of assistance to shareholders wanting to get out.

 

[JAB_Charity]

Hello All -- am back in Melbourne.

Interesting day with BrisCon at the BrisConCentre.

The Julie Anne Barrow Charitable Trust is approaching a 5% stake in BrisConnections (BCSCA).

The charitable trust is still actively acquiring BrisConnections units by way of share transfer donations. And , yes, we received some more donations in Brisbane.

I did happen to have a telephone conversation with Nicholas Bolton on 8 April when Nick called me some 30 minutes after BrisConnections announced on the ASX that the Macquarie deal had been unsuccessful. It was some 10 mins into our conversation when I got the impression that Nick was not so well informed on the breaking developments. When I pointed out that the Macquarie proposal had failed he seemed to be a bit stunned and I suggested that he call me back after he had consulted with his advisors.

Nick did not call me back nor send me any further emails. It seems that not long after we spoke on 8 April that Nick was then likely propositioned by Leightons for $4.5m.

It does not surprise me that Nick took the money and ran. In my opinion -- Nick is no David before Goliath.


David C. Barrow, Trustee, The Julie Anne Barrow Charitable Trust

http://www.Barrow.ORG.AU

 

[Sunder]

Talk about Deus Ex Machina...

I was working in Sky News today and saw this on one of the background screens. I don't visit the forums when I'm on client sites though, and haven't had any time to read everyone's posts. Considering I'm booked on client sites the next 11 days straight (including weekends), looks like I'll be missing out a fair bit too.

But this now is REALLY interesting.

 

[Judd]

Maybe very clever. Re-read LEI's substantial holder announcement again.

The payment of $4.5m is to be made to Australian Style Holdings in return for the proxies of Australian Style Investments which actually holds the BSC partially paid units. Separate companies. Should, and I assume it is not, ASH not be responsible for the liabilities of ASI nor ASI be able to call upon the cash held in ASH.........

You can guess the rest - as I am.

 

[Struzball]

Re: Brisconnections shareholders - financial ruin

I saw in the fine print of the recent ASX substantitive shareholder notices that people are paying him $1,305 each in costs for him to take their shares.

MeToo and Nyden, Bolton taking shares/liability for $1305, not votes.

 

[moXJO]

It's an interesting story overall.
What would the majority of ASFer's do if $4.5 mill were dangled in your face?
Scumbag or not, it was a ballsy move for a young fellow.