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Equititrust?

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Re: Equititrust: JUST A LITANY OF LIES

ARRANGEMENTS IN ORDER? I THINK NOT..... THEY SLIPPED PAST THE IDES OF MARCH..... BUT APRIL 2011 LOOKS LIKE D DAY

No Trust said:
“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.
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Re: Equititrust: NO .... BUT AS EQUITITRUST SAYS "IT BOLTS BY HORSE" !!!

GET ON YOUR HORSES!

ASICK said:
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.
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I wonder if they have enough money to pay wages to all those high payed Employees?????? OR is it just the investors who are loosing out? DO YOU HAVE a letter which notes that investors are not being paid? If its addressed to you - just crop out your name and post it on here!! Thanks.
 
Equititrust in Trouble

A search of the ASIC register shows that Equititrust Income Fund has not lodged Interim Financials to date. Has this got anything to do with the "Loan Restructuring" ?? If the loans are not restructured what happens next ??
 
I think this means: Equititrust is now being forced to pay the NAB back and cannot afford to pay investors at the same time. Whats the old saying, if you cant pay your bills when they fall due and owing, arnt you insolvent? BUT, the Corporations Act allows Equititrust to stop paying investors - hmm. ASIC Intervention required.
 
zencorp said:
I wonder if they have enough money to pay wages to all those high payed Employees?????? OR is it just the investors who are loosing out? DO YOU HAVE a letter which notes that investors are not being paid? If its addressed to you - just crop out your name and post it on here!! Thanks.
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If there is a loss, then investors lose out - the order of payments are: (1) bank interest, fees, and charges, (2) management fees, (3) custodian fees, (4) audit fees, (5) legal fees, (6) general operating costs - and then, any left over goes to investors.

If all outgoings exceed incomings, then a loss will occur - then that loss will reduce investors' capital (or reduce the capital guarantee). Loss of distributions (interest) will only occur when expenses exceed income.

Your fund is lucky that it has a capital guarantee, but the real questions are (1) will you ever get distributions again? and (2) will the capital guarantee protect you against loss?

Even getting taxable income with capital losses is better than losses all the way around: and, yes, you'll pay tax if it's due, regardless of how your assets are faring. Even if income is directed to assets within the fund, tax would be assessable in any event. It's a moot point for members who have no tax liability.

However if worst comes to worst, you might find yourseves without income and waiting for years watching interest, fees, and charges eat away at your capital as assets are caught in the mire of a potentially slow market.
 
zencorp said:
I think this means: Equititrust is now being forced to pay the NAB back and cannot afford to pay investors at the same time. Whats the old saying, if you cant pay your bills when they fall due and owing, arnt you insolvent? BUT, the Corporations Act allows Equititrust to stop paying investors - hmm. ASIC Intervention required.
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Investors aren't regarded as creditors. Because the fund is frozen to redemptions, then it's able to pay its creditors via asset sales: investors are the first to lose out, and are the first line to crumble when things go pear-shaped.

It would be a different matter if investors were creditors, then it'd be all over - but thanks to the Corporations Act, the PDS you signed up on, and your fund's constitution, you're all sitting ducks until your fund is eventually wound up (no matter how many years in the future).
 
You people! Jesus, I have money, my retirement fund invested here. Have been with them before they became Equititrust. Never had any trouble until Krudd decided to guarantee the banks etc. All of a sudden cannot access MY money, had to almost BEG to get some funds released. Cannot give any written answers as yet. Monthly payments expected as usual APRIL 1st (appropiate date). No money, rang and was told what I have already said. I am now in my late seventies an everything looks like turning to ****.
Thanks Mark.
 
Re: Equititrust? this day has been coming for 3 years

JFJDM you are paying tax on 'interest' income when in reality you have been receiving your principal back for probably 3 years. You should simply ring ASIC and lidge ur complaint. Have you received a written advice from Equititrust that interest payments have cwased?

JFJDM said:
You people! Jesus, I have money, my retirement fund invested here. Have been with them before they became Equititrust. Never had any trouble until Krudd decided to guarantee the banks etc. All of a sudden cannot access MY money, had to almost BEG to get some funds released. Cannot give any written answers as yet. Monthly payments expected as usual APRIL 1st (appropiate date). No money, rang and was told what I have already said. I am now in my late seventies an everything looks like turning to ****.
Thanks Mark.
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Re: Equititrust? this day has been coming for 3 years

kostag said:
Have you received a written advice from Equititrust that interest payments have cwased?
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I have not received a letter myself but I have seen a leter sent from from Equititrust to a friend of mine advising that interest payments have been suspended. That letter was received by my friend yesterday (Tuesday) and I expect to receive my letter today.
 
Re: Equititrust? this day has been coming for 3 years

kostag said:
JFJDM you are paying tax on 'interest' income when in reality you have been receiving your principal back for probably 3 years. You should simply ring ASIC and lidge ur complaint. Have you received a written advice from Equititrust that interest payments have cwased?
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Kostag, it's accruals accounting that allows a 'profit' to be created, a profit which is of an accounting nature only, and not one based on actual cash receipts. Income Distributions are made out this accounting profit as are real cash profits directed to the head company - but there must come a day of accounting, and that day starts to dawn as cash flows dry up and assets begin to be disposed of.

If you look at page 16 of the fund's 2010 Financials, you'll note Interest income arises (in most part) from , "Investments in mortgages" 35,921,428 (2010) 43,344,650 (2009)

Page 16 states (in part), "... 3. Significant accounting policies (cont) (b) Interest income Interest revenue is recognised in the income statement as it accrues, using the effective interest method. The effective interest method is based on the rate that exactly discounts estimated future cash flows of each loan, which includes interest received on a loan and establishment fees. ..."

It was accounting profits generated, but real cash paid out - ne'er the twain shall meet. The real cash was paid from asset sales, not entirely from a real profit cash pool!

I guess it's much like thinking you're got a pan full of gold, but once panned out, there's not as much gold as you first thought - you will simply not know the true state of your fund until all the assets are sold (when your fund is 'all panned out').

In my view, it is the lack of transparency in relation to cash as permitted by accruals accounting which allowed all the damaged funds to continue on at great risk to investors' capital.
 
Equititrust Train Wreck

Media Article confirming the worst just posted on the Gold Coast Bulletin Website.

http://www.goldcoast.com.au/article/2011/04/06/305725_gold-coast-business.html


Now we know why there have been no Interim Financials. It seems for all intents and purposes that the banks are in control and have stopped investor interest payments.

The Gold Coast white shoe brigade strikes innocent retiree investors again.. What were they thinking gambling tens of millions of dollars on King Con?? Not one Gold Coast Mortgage Fund which stopped paying investor distributions has survived.. Just look at Equititrust’s peers Asset Loan, City Pacific and now MFS.

Let’s hope the director’s show some restraint and stop driving their Mercedes and BMW’s to work and rubbing more salt into retiree investor’s wounds. Now is the time for the directors to step up and put their own assets on the line, including the ones held in their wives name. These guys should be ashamed to show their faces on the Gold Coast..
 
Hi All, I have closely followed this thread because I was concerned of the striking similarities to the original MFS Premium Income Fund, especially with previous MFS staff on board. Our Fund was meant to have a $50million support facility which never eventuated. Here is a media article concerning your Fund. Good luck, I hope you do not end up as badly screwed as us! Seamisty



Property woes hit distributions plan
Tracey McBean | April 6th, 2011

GOLD Coast fund manager Equititrust Capital has suspended monthly distributions from two of its flagship investment funds blaming the city's lacklustre property market.

Equititrust Capital managing director Mark McIvor said the move was prompted by ongoing market uncertainty which had delayed settlement of the sale of several assets, totalling more than $15 million alone in the Equititrust Income Fund.



Full Story here:

http://www.goldcoast.com.au/article/2011/04/06/305725_gold-coast-business.html
 
Auditors Report

If the Interim Financial Statements ever get issued, the Auditors Report by KPMG will be interesting reading..

So instead of the promised Annual Review where I thought "as a courtesy", Equititrust would interview Dudley Quinlivan / King Con (to showcase him to retiree investors) we may be getting an obituary..
 
Re: More Problems Recovering Assets

No Trust said:
Another News Article that appeared this morning. More problems recovering problem loans..


http://www.bordermail.com.au/news/n...obeid-dream-house-back-on-market/2125126.aspx
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That article appears to me to be a little drop of good news in an ocean of bad news.

Quote The five-bedroom, six-bathroom Italianate home with a pool, beach, jetty and pontoon will instead be auctioned on May 7 by the National Australia Bank.............

It is understood Equititrust, one of Mr Hakim's lenders, viewed the sale as below the market and was threatening legal action against the NAB, who hold the first mortgage. EndQuote

So on this occasion it appears to me ET is fighting for our money and has helped convince NAB to auction the house. Lets hope the auction raises enough money to repay ET 's (ie our) mortgage.
 
Equititrust Train Wreck

Is it good news or just throwing Petrol on the fire. NAB who Equititrust were threatening to sue are the key banker to Equititrust. It’s the old adage, you apply pressure here and we will apply pressure there, and hence the position today..

Equititrust should simply not have made these loans in the first place.. Retiree Investors’ money was unnecessarily put at risk on the likes of King Con and second rate assets..

This is a small loan, the main game is with the default loans to King Con in Ipswich..
 
Re: Equititrust Train Wreck

No Trust said:
Media Article confirming the worst just posted on the Gold Coast Bulletin Website.

http://www.goldcoast.com.au/article/2011/04/06/305725_gold-coast-business.html


Now we know why there have been no Interim Financials. It seems for all intents and purposes that the banks are in control and have stopped investor interest payments.

The Gold Coast white shoe brigade strikes innocent retiree investors again.. What were they thinking gambling tens of millions of dollars on King Con?? Not one Gold Coast Mortgage Fund which stopped paying investor distributions has survived.. Just look at Equititrust’s peers Asset Loan, City Pacific and now MFS.

Let’s hope the director’s show some restraint and stop driving their Mercedes and BMW’s to work and rubbing more salt into retiree investor’s wounds. Now is the time for the directors to step up and put their own assets on the line, including the ones held in their wives name. These guys should be ashamed to show their faces on the Gold Coast..
Click to expand...

This post would be amusing, if it wasnt I feel for the investors.

Thats WHY the directors put their assets in Super, trusts, or family members names

They will continue to suck the blood of the host, for wages, costs and fees, as will all the other parasites.

The holders of Senior Secured Debt ALWAYS will act in a cut-throat manner, they couldnt care less about anyone down the food chain.

They also charge an absolute sh!tload in penalty interest and fees on non-performing loans.

I make no judgements on the ethics of the principals, things go bad in business.

I was involved in a corporate restructure where imo the office-holders acted in a manner that maximised their chances of keeping a job, NOT in the shareholders best interest.

This caused me to miss a very large profit, which, while being better than taking a loss, does stay in your memory
 
Managing Director, Mark, should put up his company MM Holdings Pty. Ltd. (and all the associated trusts) as security for the NAB and Bank of Scotland loans - he doesn't need the 8 or so homes he owns. What about the poor investors?

What about David Kennedy... does he still get paid $250,000 + a year for writing on forums such as this one... and misleading the public. Where are the Financials David K?

:banghead::banghead::banghead::banghead:
 
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