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Equititrust Crisis

Where are the promised financials, remember Equititrust's promise below:

Equititrust Post on this Thread

16th-February-2011 10:10 PM

"(i) The accounts for EIF are not late as some participants on this site repeatedly state. They are currently being audited and will be completed and posted on our website well prior to the ASIC deadline of 16 March 2011; "

What is going on.......
 
Re: Equititrust: good work Colin KRUGER !!! ESCHEW or CHOW DOWN......

well it takes former MFS executives McIvor and Gwynne to admit what we all now now.....(we probably now know what Nick Haney and Wayner McIvor had learned when they jumped ship in May 2010)......

The company says its executive team has ''keenly observed and learnt from the mistakes of others''.

Advertisement: Story continues below It should have. Two of its directors, including the company founder, Damien Gwynne, held senior positions at Equititrust when it was forced to freeze redemptions because of the crisis and the withdrawal of bank funding.

wish that they had eschewed bank debt when they ran Equititrust - rather than eschewed, they chowed right in..... pushing us very much to the back of the line....

The fund will also eschew bank debt. ''Gearing really puts the bank in front of the investors,'' Mr Gwynne.

Investors will get a return of up to 9 per cent with an additional feature that also appears to be borrowed from Equititrust - the reinvestment of Insight Equity's retained profits into ''subordinated units''
 
Equititrust No Interim Financials

The perception issues surrounding Equititrust are going from bad to worse. Despite promises to post the Interim Financials as per their post below NOTHING!


Equititrust Post on this Thread 16th-February-2011 10:10 PM

"(i) The accounts for EIF are not late as some participants on this site repeatedly state. They are currently being audited and will be completed and posted on our website well prior to the ASIC deadline of 16 March 2011; "
 
Annual Review

Equititrust also promised investor's an Annual Review which is also notably missing from their website. What is really going on ??
 
Re: Equititrust: the ACCOUNTS are not on the web site because

whoever signs them has committed financial suicide....... the auditors wont sign them - the bankers are waiting with baited breath to see them - the investors? well, the accounts will only confirm what COLIN KRUGER from Fairfax is telling us
 
Equititrust No Interim Financials

Why does it always take the media to extract information from Equititrust.. A perfect example is loans to King Con.. King Con was never featured in the Equititrust Annual Reviews like other borrowers. Why ?? Maybe the innocent retiree investors would find that kind of action too fast and loose for their liking..

The moral to the story is don't lend tens of millions of dollars to people you don’t have the guts to put in your annual review or advertising campaigns..


In the same vein it seems the Media will again have to take the lead in extracting the Financial Information promised by Equititrust but not delivered. It is incomprehensible that a company with an Australian Financial Services License would make statements as to the issuance of its Interim Financials on a public forum and then not deliver.. Equititrust then have the temerity to criticise this website which they use to make public statements.

A reminder to all, this is what Equititrust posted:


Equititrust Post on this Thread 16th-February-2011 10:10 PM


"(i) The accounts for EIF are not late as some participants on this site repeatedly state. They are currently being audited and will be completed and posted on our website well prior to the ASIC deadline of 16 March 2011; "
 
No Financials - King Con

Apart from the broken promise by Equititrust to provide the Interim Financials well prior to the 16th of March there is good reason to question Equititrust as to the alleged use of King Con and or his companies on its non-performing loans.. If this was the case, I don’t think retiree investors signed up for this kind of action either..


Hopefully some light new light will be shed on this soon..

PS. The longer the Interim Financials remain outstanding the worse it looks..

PPS. Don't make promises on this website that you cannot keep..
 
Re: Equititrust: ASIC Receiver appointment

ASIC had the courage and good sense to force Equititrust to withdraw its misleading $50M new capital raising. Why is it now, that in light of all the evidence that is emerging, that will not now move and do what the National Bank and Bank of Scotland seem reluctant to and that is to appoint an indepdent insolvency firm such as McGrath Nicholls to ensure that cash flow bleed through excessive payments of on going high overheads and massive payments on the supposed subordinated investment is brought to an end and an orderly responsible asset realisatioin is undertaken forthwith before we see a destruction of whatever value remains.
 
I don't think the NAB are sitting on the sidelines - I am sure they are watching Equititrusts performance closely - even as close as having their own people inside Equititrust at the moment monitoring their ability to pay them their money back.
 
zencorp said:
I don't think the NAB are sitting on the sidelines - I am sure they are watching Equititrusts performance closely - even as close as having their own people inside Equititrust at the moment monitoring their ability to pay them their money back.
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Nothing would be done without the chargee (bank) giving permission - and that, in my opinion, would have been going on since the debt was first raised. The bank would have known the true state of the fund for years - they're not out of the loop like investors are. The bank's interests are absolutely before investors' interests, and don't think for even a micro-second that that's not the case.

The bank is not in there to protect investors, it's there to protect it's loan to the fund.
 
Still No Financials

In the dying days of City Pacific didn’t Commonwealth or one of the Banks have someone sitting on the board representing their interests till they were paid out?

The fact the interim financials have not been issued by Equititrust as promised on this thread just adds to the confusion and public perception issues.


What was really behind the failed 50 Capital Raising

Questions too may be raised about the failed 50M capital raising ultimately stopped by ASIC. It now seems it was always doomed to fail considering the loan book was going to have a 80% default rate. This was never disclosed prior to or during the capital raising.. What is of interest is whether NAB knowing all the problems has put further pressure on Equititrust that the public is not aware of precipitating a hastily put together capital raising to have NAB paid out.. Under any other circumstances, with a clear and unequivocal Conflict of Interest as outlined by the Sydney Morning Herald a prudent and stable fund would not go to the market cap in hand looking to raise funds, only to have the whole process shot down by ASIC..

Loan Covenants with NAB Breached

Equititrust on their own admission has acknowledged that the loan covenants with NAB have been breached. This related to the percentage of loans in default last year; this was said to be a minor issue, this has now snowballed to a catastrophic rate of 80% in 2011..

Going Concern

The issue now is how the auditors will classify the loans with NAB and Bank of Scotland in terms of Equititrust continuing as a going concern. The question the Public now have in light of the Interim Financials not being issued is; Are the Loans with NAB and Bank of Scotland in Default??
 
State Of The Market

The Article below in the Courier Mail is an indication of the state of the market at the moment. It is also an indicator of what lies ahead in terms of Equititrust’s problem loans to King Con in Ipswich..

The valuer from HTW is correct in his assessment of marketers and loaded prices of properties sold to southern investors.

The assets left to Equititrust in Ipswich after their little gamble with Retiree Investors’ money on King Con will not be easy to realise given the assessment of the market in the article below.


http://www.couriermail.com.au/prope...-some-developers/story-e6frequ6-1226032241063
 
Equititrust No Interim Financials

No even a whisper of the long overdue Interim financials being issued. WHAT IS GOING ON ???
 
Equititrust No Interim Financials - NAB, Bank of Scotland

Has there been any further developments with Equititrust's bankers NAB and Bank Of Scotland which is causing a delay of the Interim Financials ??
 
A new poster and an upset investor. For your information Equititrust has now suspended monthly repayments while "undergoing loan restructuring". Been with them a long time and am frankly worried sick by this.
 
JFJDM said:
A new poster and an upset investor. For your information Equititrust has now suspended monthly repayments while "undergoing loan restructuring". Been with them a long time and am frankly worried sick by this.
Click to expand...

I think in this case, 'suspended' means not to be paid until the twelth of Never.

No payment of distributions means no profit after the manager takes its management fees - heck, it might be driven into a loss! This is the bad part, watching your investment value drop while the manager is handsomely paid.

Still there's a bit of a buffer against capital loss - I guess you'll all be waiting with bated breath to see what happens next (as soon as the fund's financials are released).

Bad news never travels fast.
 
Equititrust Crisis

“Loan Restructuring" ??? Didn't the CEO recently state in the press that all arrangements with their bankers were in order..

I must reiterate that the broken promise made by Equititrust to publish their Interim Financials well prior to the lodgement date of 16 March is indicative of what is now playing out. Investors have every right to be concerned.
 
Re: Equititrust: WHAT - THEY HAVE NOW STOPPED EVEN PAYING INTEREST !!!

THIS IS AN OUTRAGE AND SURELY PROMPTS ASIC TO APPOINT AN INDEPENDENT INSOLVENCY EXPERT..........
JFJDM said:
A new poster and an upset investor. For your information Equititrust has now suspended monthly repayments while "undergoing loan restructuring". Been with them a long time and am frankly worried sick by this.
Click to expand...
 
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