http://www.smh.com.au/business/equititrust-seeks-shareissue-solution-20110509-1efqs.html
Convert to shares = isolate yourselves from your investment.
The market would kill you - speak to a Premium Fund Investor.
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
we are all in locked in forever....
...
3. it will not be not publicly listed - so no market for them
...
I have been informed that there will be a push to give investors independent legal and financial advice to enable them to make an informed decision on the share swap or otherwise known as share scam.
You can imagine what the analysts will say in their advices to the investors. It is encouraging to see that there will be independent assessments on EquitiRust's future other than the crap being peddled at the moment.
Of further note investors are concerned about effectively going into business with an individual without knowing anything about his personal financial position and how this has been affected by the melt down. When one grinds it down the investors are being asked to go into business with McIvor, the same guy who approved the disaster loans to King Con..... Investors only need to look back at the 50M Capital Raising to see the lack of transparency in terms of not disclosing that 80% plus of the loans would go into default...
I have been informed that there will be a push to give investors independent legal and financial advice to enable them to make an informed decision on the share swap or otherwise known as share scam. ... .
If investors do swap their units for shares they are taking shares in a worthless company that not one Australian bank will continue to fund once the current loans are paid out. If the banks want out what is that telling investors?
I urge all investors to go back to the choice article on Equititrust and review the warnings and assess what position they are in today as a result of Equtitrust's recklessness with their money…
http://www.choice.com.au/reviews-an...products/a-warranty-for-your-investments.aspx
CHOICE Verdict
"If safety for a 6–24 month investment term is what you’re looking for, you’d be a lot safer with your money in a bank. Banks are prudentially regulated, and some of their term deposit rates are almost as good as Equititrust’s."
"For example, at the time of writing, Bank of Queensland was paying a special 8.45 percent pa on six-month term deposits, just 0.05 percent less than Equititrust’s rate for a six month deposit of between $10,000 and $99,999. Even if you invested $100,000 for a year with Equititrust, the present rate you’d get (9.25 percent) is less than 1 percent better than the best bank deposit rates. A one percent difference on a $100,000investment is only worth $1000 extra interest over a year."
The writing was on the wall...
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