Re: Equititrust: COLIN KRUGER of SMH or ASIC - can you answer me, please?
Only six questions - these are simply raised as the latest EQUITITRUST PDS (see their webiste - www.equititrust.com.au) states and I quote:-
Mark McIvor: We are particularly distressed at the insinuations that we have put our interests ahead of investors. I can assure each and every investor that this is not the case. Every decision we make puts the interests of investors first.
So, in the interests of balance, I have asked on behalf of all investors (sorry, except OZAD, OLAN and KATIE, who for the record advise that they are very happy and all their questions get answered by the really nice friendly people at Equititrust) who may have some trouble accepting the contention or lets assume they don't know, have a right to know, these six questions (if they are rude, offensive, personal, nasty or a bit too probing - I apologise in advance):-
Q1: Why did Equititrust borrow and therein grant FIRST RANKING security (ahead of our interests, ie: investors) to National Bank, Commonwealth Bank and Bank of Scotland, over $150MILLION pushing all investors into second ranking security, at one stage behind a mountain of debt exceeding $150Million, and , as at today, still some $50Million in default loans to Banks?
Q2: Acceptiing that 'gearing' the loan book and allowing it to grow and make more interest margin and fees etc for Equititrust,was a profitable move for McIvor, how was such a policy in any way in the interests of investors, who simply stood to get the same agreed interest on their investments, such investments were meant to be secured against prime mortagge securities, over which 'we' held first mortgage?
Q3: When the Banks asked for their money back (which despite Equititrust rants, they were entitled to do), why did Equititrust de-nude cash reserves by fully paying out the Commonwealth Bank and substantially paying down the National Bank? How did this policy help investors or put their interests first and foremost? I accept that it ensured the survival of Equititrust for the benefit of Equititrust shareholders and managament, yet how did it assist investors interests?
Q4: We hear much about Equititrust's sub-ordination investment of $40million and how we should draw some obscure comfort from it. ( I say obscure because it hasn't helped many of us get paid back after 2 years) Did McIvor or Equititrust ever actually invest by way of advancing and investing $40Million of real money? I mean 'real money' in the same way as investors advanced their real money, or was the investment some paper 'journal entry' accounting, in the same vein as Allco, MFS.
Q5: Equititrust pays itself a very high interest rate (I recall something in the order of 24% (3 times what we get) ) on its own 'investment' (assuming that as per Q4: it is an actual investment) and a very large amount (I dont recall the exact amount) of managment fees. I think a total of about $15Million a year. With in excess of $40Million of investors having to plead hardship to get some repayment of their own capital (and still not getting it!), how does the payment of $15million from one's left hand to one's right hand, when investors are 'begging' for their money to be paid back, possibly align with McIvor's comment :- our interests ahead of investors. I can assure each and every investor that this is not the case. Every decision we make puts the interests of investors first.
Q6: How did the recent PDS (banned by ASIC and had to be withdrawn) which sought to raise $50Million of new money (when there is over $40M of old investors that can't be paid back right now , for last 2 years) , which as we now all understand was to repay the National Bank, and plonk some new (presumably higher rate lender) into first ranking security position ahead of all existing and legitimate investors, possibly benefit existing investors and align with McIvor comment about investor's interests being considered first and foremost?
Only six questions - these are simply raised as the latest EQUITITRUST PDS (see their webiste - www.equititrust.com.au) states and I quote:-
Mark McIvor: We are particularly distressed at the insinuations that we have put our interests ahead of investors. I can assure each and every investor that this is not the case. Every decision we make puts the interests of investors first.
So, in the interests of balance, I have asked on behalf of all investors (sorry, except OZAD, OLAN and KATIE, who for the record advise that they are very happy and all their questions get answered by the really nice friendly people at Equititrust) who may have some trouble accepting the contention or lets assume they don't know, have a right to know, these six questions (if they are rude, offensive, personal, nasty or a bit too probing - I apologise in advance):-
Q1: Why did Equititrust borrow and therein grant FIRST RANKING security (ahead of our interests, ie: investors) to National Bank, Commonwealth Bank and Bank of Scotland, over $150MILLION pushing all investors into second ranking security, at one stage behind a mountain of debt exceeding $150Million, and , as at today, still some $50Million in default loans to Banks?
Q2: Acceptiing that 'gearing' the loan book and allowing it to grow and make more interest margin and fees etc for Equititrust,was a profitable move for McIvor, how was such a policy in any way in the interests of investors, who simply stood to get the same agreed interest on their investments, such investments were meant to be secured against prime mortagge securities, over which 'we' held first mortgage?
Q3: When the Banks asked for their money back (which despite Equititrust rants, they were entitled to do), why did Equititrust de-nude cash reserves by fully paying out the Commonwealth Bank and substantially paying down the National Bank? How did this policy help investors or put their interests first and foremost? I accept that it ensured the survival of Equititrust for the benefit of Equititrust shareholders and managament, yet how did it assist investors interests?
Q4: We hear much about Equititrust's sub-ordination investment of $40million and how we should draw some obscure comfort from it. ( I say obscure because it hasn't helped many of us get paid back after 2 years) Did McIvor or Equititrust ever actually invest by way of advancing and investing $40Million of real money? I mean 'real money' in the same way as investors advanced their real money, or was the investment some paper 'journal entry' accounting, in the same vein as Allco, MFS.
Q5: Equititrust pays itself a very high interest rate (I recall something in the order of 24% (3 times what we get) ) on its own 'investment' (assuming that as per Q4: it is an actual investment) and a very large amount (I dont recall the exact amount) of managment fees. I think a total of about $15Million a year. With in excess of $40Million of investors having to plead hardship to get some repayment of their own capital (and still not getting it!), how does the payment of $15million from one's left hand to one's right hand, when investors are 'begging' for their money to be paid back, possibly align with McIvor's comment :- our interests ahead of investors. I can assure each and every investor that this is not the case. Every decision we make puts the interests of investors first.
Q6: How did the recent PDS (banned by ASIC and had to be withdrawn) which sought to raise $50Million of new money (when there is over $40M of old investors that can't be paid back right now , for last 2 years) , which as we now all understand was to repay the National Bank, and plonk some new (presumably higher rate lender) into first ranking security position ahead of all existing and legitimate investors, possibly benefit existing investors and align with McIvor comment about investor's interests being considered first and foremost?
Wow - amazing volume from the failed developer brigade! Since Kostag pays no attention to facts, I see no point in specifically responding to him and his six unreasonable questions, but I have done a trawl through this thread and gathered the following relevant points which throw some light on a few misconceptions: