Equititrust?

[kostag]

quity swap? Akin to swapping deck chairs on the Titanic

when is the Equititrust self serving incompetenence going to give way to finally doing the right and proper thing and handing over the reigns to a competent insolvency firm to wind up? Come on ASIC, we are all bleeding... Do something

 

[kostag]

Re: A Glimpse Of The Future AREN'T KPMG AUDITORS FOR MFS EQUITITRUST AND CITIPACFIC?

There goes the PI insurance

CityPac postpones $35m payout
Colin Kruger
Sydney Morning Herald

April 23 2011


If investors need any further evidence as to what they are in for they only need to read the article below in today’s Sydney Morning Herald where Equititrust gets a mention as well.


Equititrust's demise has almost been carbon copy City Pacific. The new manager of the fund is only now looking at starting legal action to recover 100M. It seems the investors of Equititrust are at least a little bit more advanced in terms of a class action being investigated at this stage of the collapse. The rhetoric to investors prior to City Pacific collapsing was similar to that of Equititrust at the moment until the manager was replaced via an investor revolution, something which may not be too far off in Equititrust’s future.


“THE continuing decline of Queensland's property market is extracting a toll on struggling property mortgage funds.”



“Managers of the City Pacific-founded First Mortgage Fund announced they will have to postpone most of an expected $35 million payout to investors due to worsening conditions.”


“The announcement, late on Thursday, followed on from another Gold Coast mortgage fund operator, Equititrust, finally admitting this week that investors in its flagship fund will face a significant loss on their investment. Just a week before, Equititrust cut income distributions to these same investors, whose investment has been frozen since 2008.”



“City Pacific executives are expected to be examined in court over their involvement in the fund's disastrous performance, together with executives from the fund's financier, the Commonwealth Bank, and the accounting giant KPMG, which acted as City Pacific's auditor.”


http://www.businessday.com.au/business/citypac-postpones-35m-payout-20110422-1dram.html

 

[kostag]

Re: Equititrust? class action contacts

Does anyone have email addresses for people from ASIC or PIPER ALDEMAN who are looking into EQUITITRUST. Have information re Quinlivan and also past representatiobs on loan approval criteria and recent contradictory statements where they claimed not to look into background of borrowers

 

[kostag]

1. information is that QUINLIVIN was allowed to run other Equititrust assets and draw above normal fees where those other un-related loans where in theory under their (inflated) LVR. This allowed Equititrust to actually advance funds to CROFTSWORTH GROUP (Quinlivin) even though all their loans were in default.

2. WINDSOR TURF FARM: there is some tie in with a well know Sydney financier Ian Lazar, where Lazar has a priority security which brings much of this substantial loan asset at risk.

3. JAMES RAPTIS: well the truth will come out in COURT I guess.

4. SOUTH AUSTRALIA: trying to get more on this one. What on earth would Equititrust be doing lending on a RESORT in SOUTH AUSTRALIA? Sounds like worth a look at.

5. BANKS: I dont see any mention about BANK OF SCOTLAND anymore, whom I thought was owed over $25M? Story that I heard (only a rumour but worth probing) is that McGRATH NICHOL were in EQUITITRUST running apencil over the place on behalh of BANK OF SCOTLAND.

6. INVESTMENT SWAP FOR EQUITY: If any of us needed any 'assistance' deciding on this one, just look at MFS which became Octaviar and then the INVESTORS took UNITS in Wellington Capital which listed on the NSX. David Kennedy - now running Equititurst - ran MFS...... the more things change, it seems, the more that they stay the same.

 

[kostag]

Re: Equititrust: PIPER ALDEMAN: here you go......

if you needed anywhere to start take this quote from MARK McIVOR........ "I've lent money for a living for a very, very long time and it's been on the basis of the asset, we've never had the great luxury of penetrating the ... character," Mr McIvor told investors.

"Frankly, banks today barely do that but it certainly will be a significant part of our future."

"Whether these commercial hands are honourable or dishonourable hands has never concerned me, provided we can hurt them more than they can hurt us."

Now, go back through their PDF material off their own web site as to the analysis they purport to undertake before they ladled out OUR MONEY and TROUSERED large fees and interest spread! all with no real risk and certainly no SKIN IN THE GAME!

Not bad is it?

Risky loans at high rates to 'dudders' somehow get repaid...... EQUITITRUST gets massive Management fees and HIGH interest on SUB-ORDINATED DEBT (or whatever this is meant to be - see CHOICE MAGAZINE who bestowed their 2009 SHONKY LENDER ACCOLADE on this doozy!) BUT if it does not work out - look who gets ROGERED!

 

[kostag]

Re: Equititrust: CLASS ACTION - GOTCHA!!!!

look at recent statements from CEO about NOT checking into background of BORROWERS - now take a look at page 7 of EQUITITRUST's PDS 31-12-10! go to PAGE 7 and hang on to your hats - because this PDS is the basis upon which we all handed over our money and we were told that this was their lending process BUT now we are told that they didn't even scratch the veneer -

Piper Alderman! on your mark, get ready! go!!!!

This is an extract from page 7 of the 31-12-10 PDS approved by the CURRENT BOARD!

"all valuations" "are no more than six months old"

"Borrowers capacity to service loans is assessed in terms of:"

"the background and history of the Borrower;"
"the Borrower's track record and experience;"
"their past credit history and track record" "with.... other lenders"

well how did QUINLIVIN get past these BENCHMARK disclosed tests - or did EQUITITRUST just forget and ladled out their biggest loan to someone who could not have possibly passed any of these criteria! ? Doesn't EQUITITRUST use GOOGLE or read the NEWSPAPERS ....

the PDS is a very important ASIC imposed disclosure statement and one upon which the INVESTING public are entitled to rely. The disclosures in the current PDS would seem to be patently false.

Come on ASIC!! how about some follow up!

 

[ASICK]

... 6. INVESTMENT SWAP FOR EQUITY: If any of us needed any 'assistance' deciding on this one, just look at MFS which became Octaviar and then the INVESTORS took UNITS in Wellington Capital which listed on the NSX. David Kennedy - now running Equititurst - ran MFS...... the more things change, it seems, the more that they stay the same.

Kostag, I have to correct you on this one. Citypac was going for an equity swap but didn't proceed. Members of the PIF voted to list their fund - stupiest thing they ever did. I think they were scared of the other option put to them, a fire sale. There was no equity swap with Wellington Capital.

I guess it won't be too long until you read words to the effect of, 'ordinary wind down in the avoidance of fire sales' in your income trust/fund.

 

[kostag]

Re: Equititrust: ASICK fear you are correct.

all over

Kostag, I have to correct you on this one. Citypac was going for an equity swap but didn't proceed. Members of the PIF voted to list their fund - stupiest thing they ever did. I think they were scared of the other option put to them, a fire sale. There was no equity swap with Wellington Capital.

I guess it won't be too long until you read words to the effect of, 'ordinary wind down in the avoidance of fire sales' in your income trust/fund.

 

[kostag]

Re: Equititrust: ASICK fear you are correct ORDERLY WIND DOWN???

as we have not been able to get at the truth except through the media and we have seen over $4M plundered in 6 months to 31-12-10, why wouldn't we engage INDEPENDENT experts such as KORDA MENTHA or McGRATH NICHOLL to oversee the wind up of the FUND ?????

don't need guys on big salaries with other agendas 'looking after' our money, do we?

 

[kostag]

Re: Equititrust: CLASS ACTION - GOTCHA!!!! PIPER ALDERMAN Note: this one

PIPER ALDERMANN:

look at recent statements from CEO about NOT checking into background of BORROWERS - now take a look at page 7 of EQUITITRUST's PDS 31-12-10! go to PAGE 7 and hang on to your hats - because this PDS is the basis upon which we all handed over our money and we were told that this was their lending process BUT now we are told that they didn't even scratch the veneer -

Piper Alderman! on your mark, get ready! go!!!!

This is an extract from page 7 of the 31-12-10 PDS approved by the CURRENT BOARD!

"all valuations" "are no more than six months old"

"Borrowers capacity to service loans is assessed in terms of:"

"the background and history of the Borrower;"
"the Borrower's track record and experience;"
"their past credit history and track record" "with.... other lenders"

well how did QUINLIVIN get past these BENCHMARK disclosed tests - or did EQUITITRUST just forget and ladled out their biggest loan to someone who could not have possibly passed any of these criteria! ? Doesn't EQUITITRUST use GOOGLE or read the NEWSPAPERS ....

the PDS is a very important ASIC imposed disclosure statement and one upon which the INVESTING public are entitled to rely. The disclosures in the current PDS would seem to be patently false.

Come on ASIC!! how about some follow up!

 

[kostag]

Re: Equititrust: OLMAN retraction

In a RECENT thread, I mentioned ERRONEOULSY that OLMAN and BUFFETMAN were sharing an IP address with a representative of EQUITITRUST. It has been pointed out to me that there is no evidence that links OLMAN to any EQUITITRUST IP. I had misunderstood a previous comment made. I have no such evidence etc however and I therefore unreservedly withdraw the comment or insinuation that links OLMAN postings to any IP address associated with EQUITITRUST.

 

[kostag]

Re: Equititrust: RAPTIS DISCLOSURE:

1. Recent media:
Equititrust is seeking to recover a $3.8 million debt held against a Mudgeeraba development site owned by a Raptis company and guaranteed by Mr Raptis personally.

Equititrust chief executive David Kennedy said yesterday that Mr Raptis had not adhered to a refinance proposal.

''We ran out of patience,'' he said. ''We're going after everything and anybody that owes us money.''

But Mr Raptis yesterday said the amount owed was in dispute and he would be defending his position. He was confident of an amicable settlement.




2.

 

[No Trust]

Equititrust Liquidation

In terms of what is best for the investors, an independent receiver / manager seems to be what a lot of investors now feel is the best way forward.

A key reason for this has been the time spent (1 year Plus) by Equititrust Management trying to dig themselves out of a hole in Ipswich on tens of millions of dollars lent to King Con..

Investors know that Landsolve is nothing more than a cover up for Equititrust’s catastrophic loans now not only in default but causing massive losses to innocent retiree investors…

Equititrust directors and management enjoyed an Easter with fees and salaries, in their multimillion dollar homes all on the back of the Retiree Investors who had "no income over Easter".

EQUITITRUST YOU HAVE LET YOUR INVESTORS DOWN AND DON’T DESERVE TO MANAGE THEIR MONEY ANY LONGER​

 

[No Trust]

Equititrust - Some Pertinent Questions Need To Be Asked

In terms of the money Equititrust had invested in the Income Fund as a warranty Equititrust have themselves acknowledged that this has effectively been wiped out. Considering the massive uncertainty and as Equititrust is in private hands the question that investors need to ask is, what is actually behind Equititrust, what underpins it? What assets support it? Are they cross collateralised to any other private debts? Is there financial pressure now being put to bare on other fronts?

In all recent collapses of this nature history has taught us that there is a domino effect on both the public and private interests of all the stakeholders and considering the lack of transparency to date this matter may need some thoughtful consideration and investigation, especially when considering whether it may be in the investors “best interests” to separate themselves from Equititrust and appoint an independent manager..

Remember Equititrust owes you and Investors owe Equititrust Nothing..

 

[No Trust]

Equititrust A Clear Case Of Self Interest

As we all know Equititrust is now at the mercy of the NAB and Bank of Scotland. Without the interim support by the banks to effectively get their money and run Equititrust would have collapsed. What happens after the banks get their money is a pertinent question for the investors. Is Equititrust solvent??
What happens when the floodgates open and investors withdraw their money in hordes, as they have every right to do ??

Investors must not fall into a trap of allowing their money to be held hostage and used as a mechanism for Equititrust to cover their losses and act as a conduit to feed management fees back to the directors/founder for the appalling lending decisions to King Con and others that have been made with your hard earned money.

"DON'T BE FOOLED EQUITITRUST IS FIGHTING FOR ITS OWN SURVIVAL AND NOT THE WELFARE OF THE INVESTORS"​

 

[ASICK]

Re: Equititrust A Clear Case Of Self Interest

As we all know Equititrust is now at the mercy of the NAB and Bank of Scotland. Without the interim support by the banks to effectively get their money and run Equititrust would have collapsed. What happens after the banks get their money is a pertinent question for the investors. Is Equititrust solvent??
What happens when the floodgates open and investors withdraw their money in hordes, as they have every right to do ??

Investors must not fall into a trap of allowing their money to be held hostage and used as a mechanism for Equititrust to cover their losses and act as a conduit to feed management fees back to the directors/founder for the appalling lending decisions to King Con and others that have been made with your hard earned money.

"DON'T BE FOOLED EQUITITRUST IS FIGHTING FOR ITS OWN SURVIVAL AND NOT THE WELFARE OF THE INVESTORS"​

Unfortunately, with a downward heading market, after the bank your share will be reduced and you'll have to wait until assets are sold to get your money - you'll never have a right to make applications to redeem ever again.

Unfortunately, your money IS held hostage.

 

[kostag]

Re: Equititrust A Clear Case Of Self Interest: THOSE LOCKED IN MUST CONTACT PIPER AL

if funded, Piper Alderman can go before a Court and probably get ASIC support to this application and seek to have an external administrator appointed to the run out fund....

about the only way to stop the financial bleed that will now follow

Unfortunately, with a downward heading market, after the bank your share will be reduced and you'll have to wait until assets are sold to get your money - you'll never have a right to make applications to redeem ever again.

Unfortunately, your money IS held hostage.

 

[kostag]

Re: Equititrust: losses

1. look at this: http://www.couriermail.com.au/ipad/bad-loans-slash-equititrusts-value/story-fn6ck2gb-1226042417704

2. Now, lets do some maths. I am not going to speculate etc because I do not know and as this site's administrators have pointed out, we cannot be reckless etc. So I'll will put in some headings and maybe between us all we can guess the result.

Loan book: $240,000,000
we know that 90% of these loans don't pay interest - we also know of trouble with RAPTIS, Windsor Turf Farm (Lazar etc - ??) and Hakem at Hunters Hill BUT lets just deal with the two biggies.... Ipswich and South Australia and use Equititrust's own numbers....

Ipswich worth $20M
less: council rates etc ($1M)
less: sales costs etc , say ($2M) GST ? agents ?
Net , say $17M

Loan on books: $49M
LOSS $32M

South Australia:
Worth - say $34M
less: rates and imposts $5M there are caveats on title for stamp duty, land tax and rates on my searches
less: costs of sale/s etc $3M GST agents etc
Net, say $26M

Loan on books $42M
LOSS $16M


so we have $48M straight off the top assuming that everything else is OK

Net loan book - lets be kind and leave off costs of running (charged by Equititrust etc) - we know this is $8M a year etc....

so loan book: $240M
less: losses above $48M

Net: $192M

Now, we guess that NAB is owed $25M + on-going default and costs
Bank of Scotland ??? $25M + on-going default and costs

so there is ........................ $142M left for us to fight over.....

BUT wait - there is more .....this net figure ignores:

interest to Banks at default rates - say a year to clean up: $5M
Equititrust take - say 1 year $8M

that's another $13M off the top.....

we have about $130M net available......

Now, aren't all the UNIT HOLDERS / INVESTORS in the fund for about $260M - again - I dont know - but I saw this figure somewhere - IF that is correct - BEST CASE is 50cents in the dollar!!! Am I wrong?

NOW: I make it clear that these figures are based on snippets and may not be accurate so in advance I declare this BUT I post this summary in the interests that others will add material to this that they know to be correct and we might get to the real numbers.

I should also mention that given that 90% of the loans don't pay interest etc (from Equititrust's own disclosures) then there would be a good chance of other loan write downs which are NOT factored into these numbers.

50cents in the dollar was my prediction in FEBRUARY 2011 - I stick by it!

 

[Olman]

Re: Equititrust: losses

Net loan book - lets be kind and leave off costs of running (charged by Equititrust etc) - we know this is $8M a year etc....


Now, we guess that NAB is owed $25M + on-going default and costs
Bank of Scotland ??? $25M + on-going default and costs

You're still getting confused between the EIF and the EPF.
NAB is owed money by the EIF.
BOS is owed money by the EPF.

The EIF has no exposure to the BOS.

I would also like to see a reference to your claim of management fees paid. The best I can come up with in the Financial Reports is around $4.5m a year. Where does your $8m come from?

 

[kostag]

Re: Equititrust: losses

Thanks for clarification.

You have information that I do not hence my disclaimer in my posting.

So, one fund has about $240M in "loan assets" and the other one I presume has some amunt to cover the BOS loan. Correct?

Do you know if NAB and BOS have 'crossed' their exposures. If they have, then in effect BOS can take a shot at the assets of the other fund and vice a versa. Correct?

Management fees: I saw (I think Piper Alderman) that EQUITITRUST drew out about $8M in cash flow in six monmths to 31-12-10 - made up of several components etc. I am trying to find it BUT I am very sure that someone identified that amount from the 6monthly figures. You are saying that EQUITITRUST and related entities took out $4M only for the 6 months. If you are correct, unless I can lay my hands on the data - I would withdraw my comment.

Re: other figures that I have guesstimated - do you have any clarification that you can bring to the table?

Thanks for your input.

.

You're still getting confused between the EIF and the EPF.
NAB is owed money by the EIF.
BOS is owed money by the EPF.

The EIF has no exposure to the BOS.

I would also like to see a reference to your claim of management fees paid. The best I can come up with in the Financial Reports is around $4.5m a year. Where does your $8m come from?