Australian (ASX) Stock Market Forum

Equititrust?

Status
Not open for further replies.
Jump to new
Re: Equititrust: an update to a 2009 PDS

kostag said:
sorry KLUA - you are ofcourse 100% right. Let's assume that 50% of the book is in distress and I guess lets assume that those loans take write off of 50% - taht would mean in reality a 75% recovery rate of the gross assets, and I suspect that this is close to the mark. On that basis, INVESTORS maybe considering an 80cents in the $ return, which is a lot better than some of us have speculated.
Click to expand...

It may be even a little bit better return since the loans are not made up to the full valuation of the property.

You also mentioned LM Management. I just googled LM Investment Management and according to the SMH a Mr Tweed is trying to get hold of the Register of members of LM, and LM is fighting this.
http://www.smh.com.au/business/fund-manager-to-fight-tweed-in-court-20110120-19y0b.html

I remember receiving a letter from ET early last year advising someone had obtained ETs register of members.
 
Equititrust Loan Default Disaster

Accurate updated valuations on the loans in default is what is required. Simple and prudent.. In the normal course of recovery by a Major Bank i.e. Commonwealth, NAB, Westpac etc a current valuation is undertaken by the bank or receivers and the asset sold in a timely manner.

The valuations to date were done for mortgage security purposes i.e. for the purposes of realisation in a reasonable period of time if the loans fell into default.

The unorthodox approach of sequestering the loans in default under the guise of Landsolve does not have seemed to have worked. Further Landsolve does not have any track record and is not at arm’s length to Equititrust. Its interests and those of Equititrust are interconnected.

An independent third party appointed to sell the assets such as a receiver takes all self interest and self preservation out of the equation.

Landsolve if they are doing their job will have an accurate independent assessment of what is recoverable. The issue is, will this information will be released to investors.

The bombshell in regard to the implosion of the loan book was released on Monday in a supplementary PDS

Yet


within “Think Solutions Update for Investors – January 2011


“As we continue to progress the restructuring of the Fund’s loan portfolio, please note that there are some material changes detailed in the SPDS.”

Material changes being the loan default status one would assume..

Then in closing

“We would be delighted if you would consider further investment or recommend Equititrust to someone you know.”

The investment that should be occurring immediately should be from the directors themselves. Their cash and private assets should be pledged to support the investors that have been prevented from redeeming their funds for over 2 years.

Company assets are one thing, private assets are another. If new investors are expected to put their money on the chopping block, the directors should also show their unwavering faith and put their houses etc on the line as well.

In the current situation, austerity measures such as salaries cuts to directors should be implemented immediately and all unnecessary expenditure stopped.

Anything less is unacceptable
 
Equititrust Loan Default Disaster

A fundamental question that also needs to be answered in light of the Loan Default Disclosure is whether any of the loan covenants with NAB and Bank of Scotland have now been breached, or will be breached at any time in the near future as a result of the loan book falling (into default) over a certain level.
 
Things are going from Bad to Worse there was a reason why Equititrust removed both PDS statements from its Web Site on Monday. Refer to post 88

Four out of five loans in default at Equititrust fund
Colin Kruger Sydney Morning Herald
February 10, 2011

"The Australian Securities and Investments Commission took action last month after BusinessDay reported on Equititrust's potential conflict in trying to raise money from new investors to effectively bail out the EIF."

http://www.smh.com.au/business/four...fault-at-equititrust-fund-20110209-1an0h.html


Whoever came up with the idea to raise funds in this manner should be fired.. You cannot raise funds when you have a Conflict of Interest. Ethics let alone ASIC guidelines don’t allow it.


Was legal opinion or regulatory approval sought?? So much for the new “directors’” so called expertise . Any money spent on this charade should come out of the director’s pockets and not the investors.


Public Relations Disaster
This is a MONUMENTAL public relations disaster... ASIC having to step in and make the company withdraw the PDS is reflective of the reckless decisions being made within the company.

ComplianceIt was only in December that the company with great fanfare issued Press Releases in the National Media spruiking its new 50M Dollar Fund Raising and embarking on a series of Investor Briefings. But did anybody check whether the PDS was compliant??


On the same day both the PDS Statements were removed by order of ASIC Equititrust added its:

“Think Solutions Update for Investors – January 2011” where McIvor states:

The Equititrust Priority Class Income Fund

"As part of our strategy to accelerate an exit from the banks, I am delighted to announce that we have now officially opened the limited offer Equititrust Priority Class Income Fund. Since its launchjust over a month ago, the Priority Class Fund has welcomed its first investors and is continuing togrow in popularity." Yes ASIC loved it...

“We would be delighted if you would consider further investment or recommend Equititrust to someone you know.”


These statements were placed on the Web Site on Monday the 7th of February 2011 whilst being fully aware that ASIC had put a stop on the Priority Class Income Fund. The statements still remain on the Web Site.. Who checks the Web Site for accuracy?


Why not just be honest and tell the Investors what’s happening and place a statement on the Web Site saying that the PDS has been withdrawn due to ASIC’s intervention.

Instead the Investors yet again have to get their information from the newspapers..

In terms of the CEO saying he sees zero impact on the Funds 1500 Investors he must be kidding and totally out of touch with the average investor.


IMPACT 1​

Firstly the fund has kept the investors’ money frozen for over 2 and half years. That’s a massive impact


IMPACT 2​

Secondly, the opportunity cost of not being able to redeem the funds is incalculable


IMPACT 3​

Thirdly, there is no timeframe for the return of Investors money. Investors cannot plan their future and get on with their retirement.


IMPACT 4​

Not having a concern about the funds being repaid to borrowers and 100% Guarantee are two total different things. (The fund has suffered over 40M dollars in impairments over the last 3 years). The Impact being continued uncertainty.


IMPACT 5​

There has been no further statement as to the remaining of 3 month operational cash flow which is used to pay investor returns. Now the 50M fundraising has been stopped by ASIC the investors are none the wiser as to whether their returns will be paid in the coming months.


To date.. the Interim Financials have still not been posted on the Equititrust Website.
 
Laughing Stock

Scott Rochfort
Business Day
Sydney Morning Herald

SLIGHT HICCUP


February 10, 2011


http://www.smh.com.au/business/putting-profits-into-perspective-20110209-1an0e.html

It looks like David Kennedy dodged a bullet in this mocking article instead Mark McIvor was in the crosshairs.... and Deservedly so..

"The Gold Coast financial concern Equititrust Capital has hit a last-minute hurdle in its plans to raise $50 million to establish a fund aimed at rescuing another of its funds, which has been frozen for two years.

The Australian Securities and Investments Commission has forced the finance firm to withdraw a product disclosure statement for the Equititrust Priority Class Income Fund.

The hiccup comes just after Equititrust highlighted its financial robustness to budding investors.

Maybe they can use some of that "pozzolan concrete" to try and repair the damage to their reputation.
 
Laughing Stock

Scott Rochfort
Business Day
Sydney Morning Herald

SLIGHT HICCUP


February 10, 2011


http://www.smh.com.au/business/putti...209-1an0e.html

It looks like David Kennedy dodged a bullet in this mocking article instead Mark McIvor was in the crosshairs.... and Deservedly so..

"The Gold Coast financial concern Equititrust Capital has hit a last-minute hurdle in its plans to raise $50 million to establish a fund aimed at rescuing another of its funds, which has been frozen for two years."

"The Australian Securities and Investments Commission has forced the finance firm to withdraw a product disclosure statement for the Equititrust Priority Class Income Fund."

"The hiccup comes just after Equititrust highlighted its financial robustness to budding investors."

"The $240 million EIF mortgage fund expects to have 80 per cent of its own loans in default by the end of this year. Equititrust drew $4.5 million in management fees last financial year. End Quote


Maybe they can use some of that "pozzolan concrete" to try and repair the damage to their reputation.
 
Re: Equititrust: substantial staff layoffs underway

Scott Rochfort
February 10, 2011


SLIGHT HICCUP

The Gold Coast financial concern Equititrust Capital has hit a last-minute hurdle in its plans to raise $50 million to establish a fund aimed at rescuing another of its funds, which has been frozen for two years.

The Australian Securities and Investments Commission has forced the finance firm to withdraw a product disclosure statement for the Equititrust Priority Class Income Fund.

The hiccup comes just after Equititrust highlighted its financial robustness to budding investors. ''We consider our reputation for capital protection to be our single most important asset. We have come through the GFC.

''Your capital is intact,'' said a recent update from the managing director of Equititrust, Mark McIvor.

The money raised from the new fund was designed to repay a $26 million debt the Equititrust Income Fund has with National Australia Bank.

''The Priority Class Income Fund provides existing and new investors with a once-only, unique opportunity to take up the balance of the bank's first-ranking position in the Equititrust Income Fund,'' McIvor said in his update.

The $240 million EIF mortgage fund expects to have 80 per cent of its own loans in default by the end of this year. Equititrust drew $4.5 million in management fees last financial year.

Equititrust has also bolstered itself by using as its logo a Roman voussoir arch. ''The Roman voussoir arch was a breakthrough in structural stability,'' Equititrust notes on its website.

''Combined with pozzolan concrete, it was one of the sturdiest methods of construction the world had ever seen.''
 
Re: EquitiRUST: a case study in CONCRETE CANCER

''Combined with pozzolan concrete, it was one of the sturdiest methods of construction the world had ever seen.'' ..... I suspect that we may have a case of the infamous Gold Coast CONCRETE CANCER
 
Re: EquitiRUST: Landsolve staff layoffs

only a rumour - large staff layoffs yesterday in LANDSOLVE - this means that the proposed 'property workout' model has failed as NOTRUST predicted.

Is anyone able to confirm this to be the case?
 
Skeleton Staff

With no further investor inflows, all that is required is a "skeleton staff". NOTHING MORE

Austerity measures of the Highest Order are essential and all unnecessary staff including those in senior management should be laid off immediately to preserve cash.

The company is well and truly under the spotlight after this latest self inflicted disaster ; every move will now be scrutinised in detail by the investors and the Australian Press.
 
Re: EquitiRUST - National Bank

I would presume that the NAB required and covenanted LVR of 24% has bene breached as a result of the default provisioning of atleast 50% of the loan assets. That being teh case, one would expect either NAB will flick their loan secuirty to some third party or else, we can expect the ilk of Korda Mentha to be on site, any time soon.
 
Re: Equititrust: MEMBERS MEETING TO WIND UP FUND

The following is straight from the ASIC website - if 100 members vote, there must be a meeting held and we can, if we think fit, move to wind the fund up:-

What rights do investors have?
Members of registered managed investment schemes have certain options open to them if they believe that their scheme is no longer performing as intended or if the management of the scheme is not meeting their expectations, including requesting a members’ meeting and applying for court orders.
Requesting a members' meeting
Members collectively have the right to call meetings to consider resolutions in respect of the scheme and its management. Meetings can be held to consider a range of resolutions including to:
• amend the constitution;
• remove and replace the responsible entity; and
• wind up the scheme.
The responsible entity must call and arrange to hold a meeting of members within 21 days of receiving a request from either 100 members, or members holding 5%, who are entitled to vote on a proposed special or extraordinary resolution. The meeting must be held within two months of the request being given to the responsible entity. The responsible entity may meet the costs of holding the meeting from the assets of the scheme.
Any request for a meeting must be in writing, state any resolution to be proposed at the meeting and be signed by the members proposing to move the resolution. The responsible entity must distribute to each member a copy of the proposed resolution and any accompanying statement as soon as practicable after it gives notice of the meeting.
Obtaining a copy of the register of members
The responsible entity of a scheme is required under the Corporations Act to maintain a register of members of the scheme. The register may assist members considering calling a meeting by providing contact details for other members. A responsible entity must provide a copy of the me
 
Equititrust: MEMBERS MEETING TO WIND UP FUND

Other investors spoken to seem to be of the same opinion. The recent situation was so badly mishandled all confidence has evaporated.

The biggest concern now is that the 50M Fund Raising has failed.

This was a direct result of the National Media highlighting the Conflict of Interest . ASIC were forced to act resulting in a Public Relations Disaster at the worst possible time.

This story has been run nationally in the Brisbane Times, The Melbourne Age, WA today etc..

So in effect the forced stoppage by ASIC is out in the open for all to see and the Fund Raising (With an inherent Conflict of Interest) was exposed for what it was..

The issue now is, the available sources of funds will have dried up as a result of the ASIC fiasco and the only remaining options are, if there are any Lenders Of Last Resort who will rank in front of the poor suffering investors.
 
Re: Equititrust: lenders of last report

There is a dilemna though, isn't there? OLMAN is correct when he says that un-restrained forced sales will accelerate/increase losses. I think most people would agree with him on that one.

A lender of last resoirt? Well, lets think about that. Does someone out there have $50million? Probably.

Now, lets take the loan book and allow for say 50% val;ue impairment. That would leave say $110million (+ or -) of reasonable loan security.

So for the right interest rate, is a $50milion loan on a $110million asset - that's about 50% - is that OK? I guess it is.

Now, in this very rocky market and knowing that anyone who went ahead of all the true investors etc, in terms of ranking of security, then a lender of last resort would know that there will be hell to pay when he/they need to sell up loans and start to realise losses. Now remember, they will only be chasing their $50million + interest, costs and fees, lets say $60million. Theoretically, they could butcher the security and take a nice windfall.

Ofcourse, that leaves all of us 'down the toilet'.

So, we ask, is there any restraint on what the Board of Equititrust can do? I guess the answer is probably no. They could in theory borrow $50million at the same crazy rate and terms that they pay themselves on their 'sub-ordinated' loan (ie: the loan you make when you don't really lend any money).

If they did that, and the $50million starts attracting 20%+ interest, coupled with Equititrusts $15million + or - fees and interest, then our remaining equity would dissapear in how long? $10million in interest + $15million in fees and subordinated interest etc. So $25million comes off any value tat might exist right now.

Now are values goign to increase or go down over the next year. Lets not be harsh and who has a crystal ball? Lets say they will stay square. If we believe that Landsolve had some idea of value adding (which we now see was falwed anyway) well , they are all or substantially being laid off right now, so we have to assume, values don't improve but equity will dwindle by atleast $25million over the next year.

The $50million does what to help any of us? Well, it seems that all it does is pays out the NAB and Bank of Scotland - so they have jumped ship say $45million ; Equititrust management (whoever is left) have kept their highly paid positions - how much?; so increased debt; higher interest costs and fees; diminishing property value and equity - and this is the best outcome, if we engage in this continued folly for another year.

Lets go the other way. A respected experienced Receiver steps in . Straight away a whole layer of execeutives are gone. Now I know these guys don't come cheap. But they are not trying to keep the business going for the sake of protecting their own job. Their legal obligation is to realise securities and even if they face say a 10% hit in value terms because it is a Receiver sale, is that as bad as the near certain 25% hit that I think we face, if we let this dinosaur continue to lumber along?

Maybe I am not on the right track. Maybe there is some rainbow that none of us are aware of. If there s, well, it is a well kep secret.
 
Equititrust Loan Default Disaster

Kennedy's Comments about an unnamed Investment Bank stepping up to the plate are most likely precipitated by the Shell Shock of the ASIC Intervention. Something needed to be thrown out there.

Equitrust promotes itself as an experienced Fund Manager yet they cannot even get the fundamentals of a PDS right. So the regulator has to step in and force them to withdraw it..

It’s a joke and it’s no wonder that the Media are poking fun at them. Scott Rochfort of the Sydney Morning Herald was restrained but nonetheless hilarious .

In an environment where there have been major collapses - City Pacific, Asset Loan and MFS, Equititrust embarks on this idiotic fund raising which was dead before it started. Then they wonder why they get branded in the same category as the others. Well the reason is they are making the same bad decisions..

They are getting so sloppy that they are serving themselves up on a plate to their detractors and are reinforcing the view that the Gold Coast is full of Spivy Financiers in the Southern Capitals.

If this mysterious Investment Bank Funding was available why was it not taken up instead of the Suicidal Fund Raising via the Equititrust Priority Class Income Fund which is now - "Moribund" ??? ...

If the Directors were asked about the Fund Raising efforts a few weeks ago, the same answer would have been given, ahhhh "Nothing to worry about.. All Good". Then a few weeks later total MELT DOWN.

A register of the members of the scheme now needs to be obtained and the members given a say via an Equititrust Investors Action Group or EIAG.

If the Investors Do Not Control Their Own Destiny - Someone Else Will


Who says that the board has to make all the decisions from now on..
 
Making A Lot Of Noise Lately

Weekend Gold Coast Bulletin
Saturday 06/11/2010


The Power 100


The Gold Coast's most Influential People


After a low-profile business career spanning 28 years on the Coast, the merchant banker is starting to make some noise lately. If the latest plans for his Equititrust empire come to fruition, Mark McIvor will become a key link in the city's development chain.

http://www.prohenderson.com.au/uploads/32/File/the POWER 100 - 06_11_10.pdf


The chain is only as strong as its weakest link... Anyone’s guess which list he will be on this year..
 
Re: Making A Lot Of Noise Lately

No Trust said:
Weekend Gold Coast Bulletin
Saturday 06/11/2010


The Power 100


The Gold Coast's most Influential People


After a low-profile business career spanning 28 years on the Coast, the merchant banker is starting to make some noise lately. If the latest plans for his Equititrust empire come to fruition, Mark McIvor will become a key link in the city's development chain.

http://www.prohenderson.com.au/uploads/32/File/the POWER 100 - 06_11_10.pdf


The chain is only as strong as its weakest link... Anyone’s guess which list he will be on this year..
Click to expand...

What a terrible pdf link No Trust. I was reaching for the free Barf bag provided on airlines.
So to surmise, the Gold Coast is run by a bunch of old megarich ugly people with the exception of Scott Prince? :p:
Diced-carrot awards anyone?
 
Equititrust Loan Default Disaster

Yeah, not pretty is it..

Neither is the crisis facing the Investor's of Equititrust
 
Re: Making A Lot Of Noise Lately

Hey, guys

I dont think that it is gair or proper to go slagging off at anyone who appears in some profile list that they probably did not produce themselves.

The Gold Coast is what it is and attracts what it attracts.

Our issues right now are surely the proper and prudent re-structuring of what was once a good business now running badly, and facing wipeout.

Mark McIvor had 26 good years. The last 2 years have been shockers.

Could he (or should he) have done things differently? Well, it seems to me now (with the benefit of 20/20 wonderful hindsight) yes! So what do we do? Flog and crucify theguy? I think not. He made me good money and for that I am grateful.

What Mr McIvor should do is to have the good sense to realise that the time for bluster and trickery is over and only serves to demean and ridicule what has otherwise been a good career. Hand the keys over to an independnet body of investors. Don't let the failed MFS guys near the steering wheel, again!

But the show has come to an end and as Charlie Green said to Michael King (MFS) two years ago .... you wont make Valentines Day.

Maybe it is time for the NAB to step in.

GumbyLearner said:
What a terrible pdf link No Trust. I was reaching for the free Barf bag provided on airlines.
So to surmise, the Gold Coast is run by a bunch of old megarich ugly people with the exception of Scott Prince? :p:
Diced-carrot awards anyone?
Click to expand...
 
Equititrust

No sympathy whatsoever for McIvor or Equititrust Management. He oversaw the Fund Raising which ASIC forced them to withdraw. This Fund Raising was done at the last minute with 3 months cash left. Why was there nothing done a year ago... This last roll of the dice was done at the expense of Investors. The Sydney Morning Herald yesterday has made them look like fools and deservedly so...

No word from David Kennedy as to the current cash position.. It seems every time they are silent there is another bombshell..

Still No Interim Financials on the Equititrust Web Site
 
Status
Not open for further replies.
Top