CIY - City Pacific

[k.smith]

http://business.theage.com.au/business/timbercorp-directors-targets-of-action-20090830-f3zd.html

In the meantime, however, Macpherson Kelley said it was poised to launch its class action.

Macpherson Kelley lawyer Ron Williamson said Mr Lidell, Mr Hance and Mr Rabinowicz would have known since 2007 that the company was struggling and investors who put money into the company after 2007 could sue for ''non-disclosure of material information about the financial viability of Timbercorp Group of companies''.

''And misleading or deceptive conduct by maintaining silence about the company being on the verge of collapse,'' Mr Williamson said.

''And all of this was happening while Timbercorp was still collecting money from investors,'' he said. ''They should have informed investors that the future of the company looked most uncertain, instead of taking money from investors.''

City Pacific as the responsible entity of the FMF increased the CBA bank facility by a massive $90million in Sept,07, at a time when redemptions had increased markedly, when new investments were on the downturn, and when borrowers were defaulting, all things that City Pacific knew about but we unitholders didn't. Against this backdrop, they deconsolidated the fund in December, 07. All the while they told us the fund was strong, and profits forecasts were impressive, so this is the information WE knew....

 

[fleetz]

Would happily be in any class action against City Pacific...... I think it would have some serious legs!

fleetz

 

[k.smith]

Would happily be in any class action against City Pacific...... I think it would have some serious legs!

fleetz

I have investments in three property funds...CPFMF, MFSPIF(now Wellington Capital) and a fund in Melbourne, where to date I have not lost a cent of my capital, and just a very small amount of interest. I believe the difference is due to the very much "hands-on" approach of the management, who is conversant on ALL 300+ loans in this company, and has proved in these "difficult times" that he is what he is supposed to be....a "Responsible Entity"...
Different story with CPFMF and MFS, though...
City Pacific sent our money from the fund to complete developments at all costs.. when we had a chance for money to come back into the fund, we ended up with a second mortgage. The pleas of the family of a terminally ill man who desperately needed financial support for Health Care were ignored.Unitholders have been frozen out of the equation...it really is a very poor scenario, imo

 

[grossrealisation]

hi all
I won't double up the information.
I have posted in fmf and those interested can email me
this is the first board that has said my post is to small
it has to be over 100 letters
I am interested in anyone that has invested 20k or more into cp cp1 and fmf
you can email me at grossrealisation and I will come back to you direct

 

[k.smith]

May 21, 2007 (The Australian Financial Review - ABIX via COMTEX) -- Plans for a $A1bn harbourfront redevelopment in Queensland have been significantly redesigned to reduce cost and risk. Listed company City Pacific Limited (CPL) has scaled back the residential and land components of the Townsville harbour project, near Jupiter's Casino. One of five planned "fingers" of reclaimed land jutting into the water will be replaced instead with 350 extra marina berths. CPL said the changes were designed to overcome possible ...

Just found this article in the archives...Does this infer CPL were already running low on funds as early as May?

 

[k.smith]

http://www.smh.com.au/news/business...d-to-redemption/2009/09/02/1251570744233.html

"......While investors in mortgage trusts are enjoying the benefit of a concerted effort by the investment management industry and the corporate watchdog to get liquidity back into their funds and get redemption payments back on track, investors in most unlisted property trusts remain in limbo, with no idea when they will see their money.

But from the point of view of many unitholders, the property trust managers are not keeping faith with the commitment they made to investors in their product disclosure statements to provide timely redemptions.

No investor puts their money into a unit trust expecting that it could take years to get it back.

Mortgage trust managers appear to have taken this commitment a lot more seriously. Recognising that investors in mortgage trusts treat them as a form of at-call cash fund, they have worked through the industry body, the Investment and Financial Services Association (IFSA), to lobby the Government to use a bit of stimulus money to put liquidity into the funds.

Asked whether property fund managers had taken action along similar lines, the chief executive of IFSA, Richard Gilbert, says: "They have not approached us........."


Makes me wonder, Why?
But then, I wonder about a lot of issues regarding funds such as ours...
Why is it that although we hold the first mortgages,and that it is our money that is invested in these companies, and our money that pays for these companies ,that we struggle for answers from them? Is it not our right to know exactly what fees are paid from the funds that effect our investments, and what fees are paid by the borrowers THAT EFFECT OUR INVESTMENTS?
Lets face it...reality, that is...if we are faced with the choice of leaving our already impaired investments in these funds every dollar that feeds from these investments, whether through the fund, such as management fees and admin. costs, or in fees paid directly by the borrower to the company, such as loan establishment fees and loan origination fees....don't they all come from that impaired asset we are clinging onto....?