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Equititrust?

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GOING CONCERN

this is part of what popped up on the EQUITITRUST web site today. Whilst prima facie this PDS is comforting because it seems that the action against it is scurrilous, look at the last few paragraphs for a moment....

As of today's date Equititrust Group is in a position to pay all of its debts as and when they fall due.
Now: I think for the first time we hear of Equititrust GROUP - what comprises the GROUP?

Secondly, if it can pay all of its debts - then why aren't investors and the bank getting paid? or don't we count as being "debts" anymore?

NOW, finally - look at how the PDS is signed - no one person has signed - not David Kennedy nor Mark McIvor - in other words NO-ONE personally seems to be prepared to mae the statement.

I AM GLAD THAT EQUITITRUST CAN PAY ITS DEBTS AS OF TODAY - I AM LOOKING FORWARD TO MY CHEQUE BEING SENT OUT TODAY AND I AM SURE THE NATIONAL BANK WILL WELCOME THE NEWS.
 
Solvency

As Colin Kruger correctly states in his most recent article "Equititrust is at the mercy of its banks" Simple as that...

For investor’s sake in the future, one can learn from this lesson. Any other creditor when not paid can issue a Statutory Demand on Equititrust and if not satisfied can proceed to court to wind up the company.

The way investors are stitched up with Equititrust they cannot do this, those rights are extinguished in favour of Equititrust doing as they please, i.e. stop redemptions and income distributions whilst lending money to King Con and losing 20% of the investors’ money.. Think about this when asked by Equititrust if you want to continue on their nightmare rollercoaster....

They have all the rights investors have none..
 
Re: Equititrust - Winding Up Application

Apart from the fact that 80% (plus) of the loan book is in default, who the hell did Equititrust lend to??? It appears that in its dying days it was the lender of last resort using retiree investors’ money... There seems to be one court case after another adding to investor's woes..

Now it seems that EquitiRust must also scrounge around for funding from lenders of the very last resort as the mainstream banks have had enough of their fast and loose forays on King Con etc and have pulled the plug..

I think given the current status of EquitiRust there is not a lender in the world that would lend them a dollar. But don’t underestimate them they will come back to the retiree investors whose money they have held hostage for 3 years and ask them for some more.

Gold Coast Cowboys will always be Gold Coast Cowboys​
 
Re: GOING CONCERN


'GROUP' will not include your trust/fund.

The best/worst thing that could happen if Equititrust Limited couldn't pay its debts is that Equititrust would lose its AFSL, in which case Equititrust Limited could not manage the fund and any remaining capital warranty would revert to an ordinary investment. In such circumstances, if no arrangements are made by Equititrust then a court would appoint a manager.

$$$$$ which ever way it goes.
 
Change the Manager

Well, it seems that EquitiRust is proving to all and sundry that it is not fit to manage the fund.

With investors having to bear massive losses due to irresponsible loans and no answers on the horizon the company has become a laughing stock in the national media... Another spivvy mortgage fund from the Gold Coast.. Who else would lend, let alone deal with King Con - Equititrust did and it looks like King Con is hurting them more than they can hurt him... NICE GAMBLE WITH OTHER PEOPLES MONEY
 
https://www.comcourts.gov.au/file/Federal/P/NSD558/2011/actions

If I am reading the above site correctly it appears the attempted winding up has been dismissed, and with costs awarded to Equititrust.

Curiously the document is headed Order Not entered. Dont know what this means.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
No: (P)NSD558/2011

RURAL SECURITY HOLDINGS PTY LTD
Plaintiff

EQUITITRUST LIMITED ACN 061 383 944
Defendant

ORDER

JUDGE:
Justice Emmett
DATE OF ORDER:
6 May 2011
WHERE MADE:
Sydney


THE COURT ORDERS THAT:

1. The originating process be dismissed.
2. The plaintiff notify ASIC as soon as practicable, and in any event no later than midday on 9 May 2011, of the making of order 1.
3. The plaintiff pay the defendant’s costs of the proceeding.
4. The defendant file and serve written submissions on costs no later than 5pm on 10 May 2011.
5. The plaintiff file and serve written submissions in reply no later than 5pm on 12 May 2011.
6. The proceeding be listed for the determination of costs at 9.30am on Friday, 13 May 2011.
 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

I wonder what the submissions or rpelied were in regard to SOLVENCY or lack thereof. Presumably by MONDAY we can get a copy of the full judgement etc.

I hear a strong rumour that the NATIONAL BANK is going to sell their security to a THIRD PARTY lender.

Again, just a rumour and may be untrue. Anyone heard anything about this?


Although I expect that all INVESTORS would finish up bearing any costs etc, atleast we would have a realisation process undertaken re: securities, which has to be a good thing.

 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

kostag said:
... hear a strong rumour that the NATIONAL BANK is going to sell their security to a THIRD PARTY lender. ...
Click to expand...

Now, why would the bank do that? It's making good money, and it's investment is secure.

What has happened before elsewhere, is that an institutional investor buys the mortgages (probably at a discount - that is, at a loss to investors) and the bank is paid out. The fund then guarantees the mortgages by becoming second mortgagee to all the mortgages.

Such a move is no more than a shell game at investors' expense.
 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

I suspect that there are a number of reasons:-

1. No bank wnats this kind of loan on their books BUT they don't want to be seen by the poor old investors as the one to pull the pin and trash their investment - look what happended to the CBA over CityPacific when they finally had to 'pull the pin'. So, if they sell their loan even at the sake of giving up nice penalty rates - they will probably do it.....

2. Now why does a privateer buy the bank loan..... well in the case of EQUITITRUST - let's say the Bank is owed $25M and the loan book is Gross say $240M BUT let's write off a good $80Million of that - that's $160M - now no matter how hard an inco,ing lender is - they will get their money back - it is only the INVESTORS out there who will take the haircut. Plus, the new owner of the security is not worried about good will etc - so they will simply accelerate interest rates that they charge, penalty fees and costs and that's is where thye make their money PLUS any upfront concession they get form the outgoing Bank.

Don't be surprised if the BANK OF SCOTLAND took a substantial cut just to get out. That benefit does not come to investors , it goes to whoever buys the mortgage at a discount.....

ONLY plus to us is that this basketcase starts to get realised sooner than latter, so we start to see our money back sooner than latter and the management fee bleed stops as well.

I WOULD BE INTERESTED to see the TRANSCRIPT of the recent court case if it get published MONDAY - there must be some solvency evidence in there. That should make illuminating reading for us all.



 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

kostag said:
I WOULD BE INTERESTED to see the TRANSCRIPT of the recent court case if it get published MONDAY - there must be some solvency evidence in there. That should make illuminating reading for us all.
Click to expand...

Most unlikely that the transcript will be published.

There was an article about the case in the Gold Coast Bulletin on Sat on page 113. The article in the Bulletin is interesting reading, not sure if it is online though.

Even if they had looked at solvency wouldnt they have been looking at the solvency of Equititrust itself and not the solvency of the Equitiust fund?

Lets hope Equititrust can get costs from RSH, perhaps even grab its equipment on the turf farm to pay for the costs.
 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

1. I am in Western Sydney and cannot get GC papers

2. You are probably correct re full transcript

3. Solvency: probably correct re Equititrust Ltd as against fund. However, if the claim was re a mortgaged parties assets, I presume that action was against company as the RE or Trustee of the fund and it was in effect the Fund beign sued. I suspect that this is not the last the we have heard of this matter.



 
Re: Equititrust: other than the attempt to bring on LIQUIDATION

kostag said:
... Don't be surprised if the (bank) took a substantial cut just to get out. That benefit does not come to investors , it goes to whoever buys the mortgage at a discount. ...
Click to expand...

Don't worry, the bank won't take a cut, investors will. The First Mortgage Fund still has a facility of $40m with the CBA ($10m undrawn). The CBA seems happy to be there because that's the business its in.
 
Re: Equititrust: other than the attempt to bring on LIQUIDATION


Sounds like the fund would pay for Equititrust's legal costs anyway since the action seems to relate to fund activities (just a guess).
 
On going Litigation

I suspect that the litigation of most concern to Equititrust is when it comes head to head with it's investors... that will be the main game in the not too distant future..
 
Troubled Indeed

Mixed bag for troubled funds

Colin Kruger

Sydney Morning Herald

May 9, 2011


http://www.smh.com.au/business/mixed-bag-for-troubled-funds-20110508-1ee7r.html


Equititrust investors only have to read the article and look at the MFS disaster to see what will happen if they continue on the nightmare rollercoaster with EquitiRust..

EquitiRust needs to have an independent administrator / receiver appointed to liquidate the assets and then commence legal proceedings against the board who led the retiree investors into this abyss...
 
Equititrust Seeks Share-Issue Solution
Colin Kruger
Sydney Morning Herald

May 10, 2011.


"THE troubled Gold Coast mortgage fund operator Equititrust has proposed that two struggling funds with more than $300 million in assets be converted into shares, which would remove its obligation to pay back what remains of unit holders' investments in the funds". End Quote


EquitiRust is trying to pull the wool over the eyes of innocent retiree investors with this share scam.. Look at what has happened with the City Pacific and MFS share scam disasters.

Investors are not stupid, this latest scam will sink just as quickly as the 50M Capital Raising... look at the parallel to MFS that Colin Kruger has highlighted in his article, it’s enough to make investor's SHUDDER...


http://www.smh.com.au/business/equititrust-seeks-shareissue-solution-20110509-1efqs.html
 
Fund's Future is Natural Selection

Fund's Future is Natural Selection

Scott Rochfort
Sydney Morning Herald

May 10, 2011.

The Article by Scott Rochfort in today's Sydney Morning Herald is an absolute classic. Not only does it show that that EquitiRust and its founder are the laughing stock of the national press it also exemplifies the farce that investors are facing with another attempt to pull the wool over their eyes with a classic Gold Coast Share Scam..



"The Gold Coast financial concern Equititrust has attempted to offer more soothing words to investors trapped in its frozen flagship mortgage fund.

In an update to investors, Equititrust referred to the Darwinian quote that its founder, Mark McIvor, apparently ''lives by'' - ''It is not the strongest that survives, nor the most intelligent; it is the one most capable of change.''

Appropriately, the group, as the next step in its evolution, plans to drop the Equiti from the name of its new venture so it can morph into Trust Capital Group.

Reminiscent of the now collapsed City Pacific's attempts to convert units in its flagship fund into shares, Equititrust wants to turn unitholders in its mortgage fund into shareholders of the above-mentioned Trust Capital Group.

''Innovation is the ability to see change as an opportunity, not a threat,'' was another of the quotes offered to reassure investors.

The company also offered more fodder that related to Darwin's theory of natural selection (aka survival of the fittest).

''We remain conscious of the need for a large percentage of investors to receive a distribution in order to cover their day to day living expenses,'' it said. Equititrust noted how distributions would not recommence before August.

The fund, which holds more than $200 million of investor money, will only be able to pay distributions once it has repaid a $25 million debt to the National Australia Bank. Equititrust also admitted it may have to book a $24 million writedown on its second biggest mortgage loan.

As the company was so recently fond of saying: "You've earned the equity, we've earned the trust." Now it now will need to just rely on trust."End Quote


http://www.smh.com.au/business/funds-future-is-natural-selection-20110509-1efqt.html




WE HAVE LOST YOUR EQUITY - HOW ABOUT SOME TRUST ???????????????????​
 
Transcript on Quinlivan - Personal References for King Con From McIvor and Haney

Investors of Equititrust need only read the Decision and Reasons for Decision of The Administrative Appeals Tribunal to get an insight into the cosy relationship Equititrust had with King Con. It is a complete and utter joke and a slap in the face of Retiree Investors who trusted Equititrust. It’s the usual incestuous Gold Coast Train Wreck. READ THIS and then have a good think about your future with this sinking ship...

Its no wonder that there is a class action underway.........


Quote
"Mr Haney’s evidence was effectively a character reference for Mr Quinlivan. The evidence of Mr McIvor, the chief executive officer of Equititrust, was more useful on the question of public interest. Equititrust was Mr Quinlivan’s principal financier. At the time of the hearing, the group companies owed around $63 million to Equititrust. We were told determined but so far unsuccessful efforts had been made to obtain alternative sources of finance at lower interest than that offered by Equititrust. If that refinancing does not occur in a timely way and the Quinlivan group subsequently collapses, Equititrust would be exposed to potentially significant losses. Mr McIvor agreed with Mr Haney’s view that Mr Quinlivan’s role in the group was an important ingredient in any success it has had or will enjoy. Mr McIvor said that Mr Quinlivan’s disqualification would make the group less attractive as a financing proposition. It would also constitute an event of default although there is no guarantee that the financiers would act against the group in those circumstances.

Mr McIvor agreed the success of the current development projects was very important to Equititrust. He said that success would be much harder to achieve in the absence of Mr Quinlivan’s special skills in property development. He said the evidence he had heard about Mr Quinlivan’s chequered business history did not change his mind about the desirability of retaining Mr Quinlivan in a management role at the Quinlivan group.

We accept the evidence of Mr McIvor that the failure of companies in the Quinlivan group would have very serious ramifications for the group’s financiers. That might in turn have serious implications for those who deposited funds with the financiers. We note a number of the group companies have already been placed in external administration and continue to experience financial problems that may yet cause the group to fail regardless of any decision we make.

We accept Messrs Haney and McIvor believe Mr Quinlivan’s continued involvement in the group would assist the successful completion of the developments. While we have expressed our concerns about his management skills, it appears his skills in the development and marketing of property are highly regarded. We accept it would be difficult to replace him in a timely way.


We have been mindful of the interests of the financiers while we have conducted these proceedings. Mr Quinlivan has remained involved in the management of the group companies (albeit under the careful watch of an accountant familiar with the group’s operations) throughout the hearing process and during the period in which we have deliberated. Mr Quinlivan and his financiers have had ample time to find fresh sources of funding or to make other arrangements to deal with the possibility of an adverse outcome. They could have found new management personnel or liquidated assets or obtained further security. While we must have regard to their interests, it is also incumbent upon the financiers to look out for themselves and their depositors. End Quote

Well its clear that EquitiRust was not looking out for its depositors in any way...

http://www.austlii.edu.au/au/cases/cth/AATA/2010/113.html
 
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