Equititrust?

[kostag]

Re: Equititrust: DESPERATE NEW BORROWING

Isn't the real problem this?

What highlighted this issue to me is that I don't think that any investor in EQUITITRUST realised that the DIRECTORS could go into the marketplace and borrow as much as they liked and secure that new DEBT ahead of our investment.

This meant that if EQUITITRUST was losing money; could not pay their own management fees; put on a stack of new expensive staff - they could simply borrow as much as they wanted, at whatever cost, give these NEW LENDERS the best secuirty in town - pushing us further to the back of the line, whilst choosing not to repay/redeem us one red cent! of our hard earned EQUITY.

Now, the Bnak of Scotland and National Bnak put the squeeze on , so in the interests of SELF PRESERVATION not the INVESTORS, Equititrust goes out into the MARKET and borrows as much as they need at whatever rate they want to pay - so that they can payout the NATIONAL BANK and BANK OF SCOTLAND back; keep their own jobs; keep paying exorbidant fees etc, and all at our cost and expense.

No-one I repeat NO-ONE is watching this or stopping this.

Why wouldn't they pay 50% interest per annum? and destroy our equity. Just to grab a life raft for themselves. They can never lose. We lose.

Now, I spoke to a lawyer who mentioned that CREDITORS who are on notice of potential insolvency etc and press their position and get paid ahead of others may be treated as PRIORITY and have to put the money back. Well, that's what's happening here right now.

So because this website is a semi public forum I want to put NATIONAL BANK and BANK OF SCOTLAND and for that matter , the EQUITITRUST fund all ON NOTICE (that draws out the management fees etc), that our INVESTMENT FUND is more than likely INSOLVENT and that should any money be taken from this FUND from this day onwards that I will refer to this POSTING in any litigation as you having been given NOTICE of this.

You cannot say that you have not been warned!

I might just be one voice out of hundreds BUT if I get anything less than 100cents in the dollar, I will be suing David Kennedy as CEO who misled us all that all was well as well as any ENTITY who withdraws money or gets better secuirty from this day onward.

11-2-11 at 12:20pm

 

[No Trust]

Equititrust Loan Default Disaster

The Solvency of Equititrust is yet to be determined, there have been no statements as to the cash position and the long overdue Interim Financial Results are yet to be released despite promises to do so.

In light of the above, and Media Articles exemplifying the fact that Equititrust (in their own statements) have said that they 3 months of operational cash left, it is no surprise that in the absence of timely updates issues of solvency are being raised.

Preferential Payments

In terms of preferential payments to creditors, this will not apply to a bank with a registered security and in terms of replacing this debt with another first ranking security the investors can do nothing about that. Equititrust can replace this debt.

Not what was signed up for

There is one fundamental difference though and that is when the Investors signed up , they signed up for a prudently managed fund which was to maintain a healthy loan book.

In the past, Equititrust's additional funding requirements were provided by main stream banks, such as the long established relationship with NAB and more recently the short lived relationship with Commonwealth.


The replacement of main stream banks with a hastily cobbled together PDS (which ASIC forcibly stopped last week), and now possibly lenders of last resort, was not what the investors signed up for.

They signed up for a conservative fund which in the day Equititrust was.


Lender of Last Resort

I am not being alarmist when I say lenders of last resort because the facts speak for themselves. There is not one main stream bank in Australia that will lend to Equititrust at the moment.

ASIC have put a stop to further fund raising which in the current climate just snowballs the perception issues facing Equititrust when it goes cap in hand to raise 50M.


The projections that the loan book will be approaching an 80% default rate do not bolster an image of stability. All of that combined, I think that any reasonable person can conclude that a conservative lender will not go near them.

Any funding that will be secured will only come from a lender of last resort under conditions that it dictates. Equititrust stated in its updates that NAB's conditions for maintaining the debt were not commensurate to the risk. Well with the greatest respect it seems that NAB's offer should have been taken up with both hands considering the risk profile now. Additionally NAB would have been a lot easier to deal with due to the long established relationship.

What does Equititrust and McIvor do instead... It goes on a tirade of abuse against both Commonwealth and NAB on its own Web Site; calling them capricious and opportunistic and for good measure posts jokes and a cartoon about banks on its Web Site.

It’s tantamount to throwing all the toys out of the cot... Is this a mature and professional way to handle the matter?


Having exhausted all other avenues, Equititrust is now left in the unenviable position of now having to accept whatever funding it can get at whatever cost.


Its ability to negotiate is effectively zero.


The investors did not sign up for this and have unwittingly been strapped to the back of Equititrust whilst it continues its folly.


If the investors do not put their foot down where will it end..

 

[No Trust]

FORGET ABOUT THE FUTURE AND PRETEND ITS THE PAST

Equitritrust, on its Web Site, under Equititrust Income Fund has replaced the PDS with a version issued in 2009 which has previously been withdrawn.

Extract Below:

Continuous Disclosure Statement
Equititrust Income Fund ARSN 089 079 854
Equititrust Limited ACN 061 383 944, AFLS 230471
This Continuous Disclosure Statement is dated 11 February 2011._________________________________________________________
Equititrust Income Fund - Product Disclosure Statement
Attached is a copy of the past Product Disclosure Statement (PDS) dated 6
February 2009.
Please note that this PDS is not currently in-use and has been withdrawn.
However, it is provided purely for the purposes of Continuous Disclosure, for
historical reference and for use by existing investors of the Fund only.


What has precipitated this?? Very unusual indeed... Maybe "nothing" else to put in place of the PDS that ASIC forcibly stopped..

Let’s hope that a modicum of sanity prevails and the long overdue Interim Financials are published rather than a set of financial from a previous year..

 

[kostag]

Re: Equititrust: DEFAULTS AND MORE PDS TROUBLES - MERIDIEN 'OPPORTUNITY'

Does any investor or adviser have the answer to these questions?

Q1: What projects does Landsolve manage for its parent company right now? We are told that Landsolve steps in once a loan is impaired (that is, Equititrust has stopped capitalising interest on the loans) , so we can therefore safely assume that the projects under Landsolve control are all the potential ‘write off’ category.

Q2: In relation to the Opportunity Fund: Meridien Information Memorandum which is on the Equititrust web site:-

Q2.1: who is the existing Senior Debt financier who is owed $14M?
Q2.2: is that existing senior debt facility in arrears?
Q2.3: does any Equititrust entity have any existing exposure to this security and Meridien generally, and if so:-
Q.2.3.1 How much do they owe? (if they owe anything - how much of this new fantastic opportunity being raised to assist future development, is actually being siphoned back to Equititrust?)
Q.2.3.2 Is interest presently being actually paid on those loans or capitalised?

For those of us who thinks that ‘capitalised’ is some finance expression of merit etc - it is usually a warning bell - it simply means that borrower is not or can’t pay interest, so the lender just tacks it onto the amount already owing (which the borrower cannot repay or service either ) and as long as the Lender is legally able to do this and or hoodwink ASIC and the auditors that this practice is OK, then they can say that the loan is a good one and not in default?

You might (or should) ask "How come the loan, on which interest is not being paid, is not in default?" Answer: Because the Lender is just adding it to the already unpaid debt, dummy! A nice bit of accounting trickery, eh?
How stupid are we all? Next time that I am a running a bit short, I will ask my bank to keep me in good standing and just ‘capitalise’ my payments. I thought that I had to keep paying my bills to stay out of default. Seems not!

 

[Olman]

Re: FORGET ABOUT THE FUTURE AND PRETEND ITS THE PAST

Equitritrust, on its Web Site, under Equititrust Income Fund has replaced the PDS with a version issued in 2009 which has previously been withdrawn.

Extract Below:

Continuous Disclosure Statement
Equititrust Income Fund ARSN 089 079 854
Equititrust Limited ACN 061 383 944, AFLS 230471
This Continuous Disclosure Statement is dated 11 February 2011._________________________________________________________
Equititrust Income Fund - Product Disclosure Statement
Attached is a copy of the past Product Disclosure Statement (PDS) dated 6
February 2009.
Please note that this PDS is not currently in-use and has been withdrawn.
However, it is provided purely for the purposes of Continuous Disclosure, for
historical reference and for use by existing investors of the Fund only.


What has precipitated this?? Very unusual indeed... Maybe "nothing" else to put in place of the PDS that ASIC forcibly stopped..

Let’s hope that a modicum of sanity prevails and the long overdue Interim Financials are published rather than a set of financial from a previous year..

Look at your statement: "......the PDS that ASIC forcibly stopped." Wouldn't that "precipitate this" removal of the PDS? Your question demonstrates a lack of objectivity that does nothing for rational debate.

As a true believer in the almighty integrity of the press, you seem to overlook the reported statements that Equititrust removed the PDS voluntarily after discussions with ASIC.

The hysteria of recent posts here is staggering. While valid points are occasionally raised, they get lost in the general bile. Many unfounded statements have been addressed in earlier posts, but are swept aside and restated as if volume and frequency will somehow give them legitimacy.

The few members posting here are an indication of the quality of the thread. What we see is a constant repetition of press articles with the odd quote from Equititrust's publications, and lots of bold type and underlining to emphasise the squawking negativity. How about toning down the emotional vitriol and sticking to the point?

 

[kostag]

ASIC VISITS - SO WE GET ACTION AT EQUITITRUST

I guess no-one can answer my reasonable requests for information.

I am not interested in vitriol etc.

What exactly does this quote from OLMAN mean:- Equititrust removed the PDS voluntarily after discussions with ASIC Their choice was what? Be attacked through the Courts by ASIC and look even more shonky?

when ASIC visits, I presume as the corporate watchdog, it is them telling someone what they have to do, and so to avoid being dragged off to Court, Equititrust or whoever does what they are told.....

I think we should know what the process is, before Equititrust has us all believing that they are one minute out there flogging a PDS )that they knew was wrong and conflicted) - however then just voluntarily withdraw it. Isn't the truth, the corporate watchdog came calling? and then the game was over.

Isn't a bit like saying - as a result of the Police visiting X, that X voluntarily popped down to the Police station to be charged.

Look at your statement: "......the PDS that ASIC forcibly stopped." Wouldn't that "precipitate this" removal of the PDS? Your question demonstrates a lack of objectivity that does nothing for rational debate.

As a true believer in the almighty integrity of the press, you seem to overlook the reported statements that Equititrust removed the PDS voluntarily after discussions with ASIC.

The hysteria of recent posts here is staggering. While valid points are occasionally raised, they get lost in the general bile. Many unfounded statements have been addressed in earlier posts, but are swept aside and restated as if volume and frequency will somehow give them legitimacy.

The few members posting here are an indication of the quality of the thread. What we see is a constant repetition of press articles with the odd quote from Equititrust's publications, and lots of bold type and underlining to emphasise the squawking negativity. How about toning down the emotional vitriol and sticking to the point?

 

[klua]

Re: FORGET ABOUT THE FUTURE AND PRETEND ITS THE PAST

The hysteria of recent posts here is staggering. While valid points are occasionally raised, they get lost in the general bile. Many unfounded statements have been addressed in earlier posts, but are swept aside and restated as if volume and frequency will somehow give them legitimacy.

I must agree about the hysteria of some posts and reposting of unfounded statements even after corrections.

I am as concerned as anyone about my investment and I respect anyone’s right to post opinions. However if we all try to post accurate statements based on facts then we all would be better informed and look for a rational resolution.

 

[kostag]

EQUITITRUST: ASIC AND MERIDIEN: Choice Magazine: we have another nomination for 2011

does anyone know if ASIC took a look at the other PDS that good old EquitiRust is flogging around the traps itrying to cobble together some high rate funds of some $10M or so secured on a second mortgage on a marina of all things where some $6M goes to paydown some other existing debt.

This is now as we all know a classic sign of PONZI sign when large amounts of expensive money are borrowed to pay down existing debt rather than furthering the underlying security.

and more of the CHOICE MAGAZINE shonky capital warranty - take a look at the schematic which forms part of the PDS - anyone work out what it means in real terms? I dont think that it means they ever write a cheque out - just that some 'paper' entry sits at the back of all the real money (I think?)

Just more costs and more interest on an existing security without any real advancement.

Warning Doctor Robinson, Warning!

 

[kostag]

Re: FORGET ABOUT THE FUTURE AND PRETEND ITS THE PAST

I agree KLUA someone has an axe to grind here however look at my last few postings - I have asked some reasonable questions that I think we need answered and frankly someone from Equititrust is clearly one of the 'parties' in all this traffic, and they simply won't answer the questions. I have managed to track down a former emplyee (sacked this past week) who has an axe to grind, so I expect to get some truth and this will get posted this coming week.

I must agree about the hysteria of some posts and reposting of unfounded statements even after corrections.

I am as concerned as anyone about my investment and I respect anyone’s right to post opinions. However if we all try to post accurate statements based on facts then we all would be better informed and look for a rational resolution.

 

[No Trust]

EQUITITRUST WAS FORCED TO REMOVE THE PDS

Please refer below, as reported on the 10th of February Equititrust was Forced to remove the PDS..



Scott Rochfort
Business Day
Sydney Morning Herald

SLIGHT HICCUP


February 10, 2011


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

"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.

 

[No Trust]

Equititrust in Crisis

The key issue is communication and Equititrust does not do this. Why were the investors not told that ASIC intervened, and whichever way you want to phrase it, put a stop to the PDS for the 50M capital raising.. A this juncture, it was the rescue package for the Equititrust Income fund.


What many investors spoken to, want to know, is where are the Interim Financials which are long overdue...

There is no vitriol just a statement of the facts and the REALITY that the rescue package and fund raising was botched up.. No one can deny this... and mark my words any lender that will lend money to Equititrust will be a lender of last resort.

Unless there is some statement about the 3 month cash position which was highlighted on the 10th of January 2011 by Colin Kruger there will be concerns about solvency.

 

[No Trust]

Equititrust in Trouble

In regard to the , Meridien Opportunity Fund I doubt that it ever got off the ground..

In regard to Landsolve, again no information given to any of the investors..

 

[kostag]

Re: Equititrust: slience is not golden: investors is the dark

NOTRUST: sadly whenever there is hype and hyerbole, OLAMN and OZAD from Darwin, jump into action with wonderful words and condemnation for anyone who dares raise any questions.

Reality is though that they and their friends at Equititrust will simply not answer real questions, again, as you say a continuation of the public relations 'mushroom treatment' instigated by David Kennedy, after Mr McIvors 20+ years of successfully running a smaller, tight ship.

This is why so many people who probably would have hung in (for old times sake) have simply had to face the hard bitter truth, that they are all being hoodwinked and it is time to act.

 

[klua]

Re: Equititrust: slience is not golden: investors is the dark

Reality is though that they and their friends at Equititrust will simply not answer real questions, .

Have you called ET and asked them the questions?

 

[No Trust]

Equititrust in Crisis

I love how the stooges are sent out to push the corporate line...

Ok let’s do this, those who want to call Equititrust can do so and report back on this site as to the delay in the financials and the 3 month cash position.. It won’t happen though because these guys are Equititrust themselves trying to stifle information. There will be nothing posted. Again I put the challenge out.... These guys say call but they haven’t called themselves because they are Equititrust posting under assumed names...

On the other hand Equititrust seems to be quite "obedient" when it comes to ASIC, so I will direct my issues as to the 3 months cash remaining and delayed financials directly to the head of ASIC..

 

[kostag]

Re: Equititrust: call em - sure can: PUBLIC RELATIONS SPIN NOW IN OVERDRIVE

KLUA, yes I did.

In December I called EQUITITRUST under the ruse of increased investment.

I spoke to a very nice fellow who seemed to know what he was talking about. In fact, I am sure he was knew his stuff.

I then spoke to a more senior fellow.

I was very easy with my questions about the status quo etc, as I was calling supposedly about new investment.

I was told several times that there was a new re-financing product and that all was on track etc. PDS statements were up to date. External bank facilities were in order etc.

Now, you dont shoot the messanger however as we know from recent events - all was not/is not well; fund raisings are not on track; disclosures are not current and more than likely deceptive, false and misleading; there is a severe cash crisis on hand; their is massive insolvency and bad debt risk and exposure.

Now, what concerns me perhaps the most is that these people (and to be fair, they are employed to do a job, which they were doing well) would have taken my money (so any new investors, please take care) - new money, to pay old bills (a classic PONZI scenario). My money would have been locked in with little prospect of redemption and now as we know, secured by dodgy assets - default loans not paying their interest (who lends money to people who can't even pay interest?)

Now, OLMAN (or the EquitiRUST Director of Public Relations, whoever you may be) used an inappropriate analogy to HITLER in an earlier post which I (and a lot of others) found quite offensive. However to perhaps make my point clearly to OLMAN (and at a level that clearly he likes to operate in) - using his HITLER analogy - call Equititrust and find out how things are going? I think not - a bit like the rabbi calling Hitler in 1944 just checking that all is going well with the ethnic population. (I am sorry for offending one by the way).

I still think that my analogy to good ol' Kolonel Klink and I know nuthink! is more to the point when describing now muzzled EquitiRUST Spinmeister and ex - MFS supremo, and EquitiRUST CEO - David Kennedy.

We need the independent arbiter and watchdog ASIC or perhaps for the NATIONAL BANK to appoint an independent RECEIVER such as McGRATH NICHOLS or BRI FERRIERS who can get the banks paid out and then do the best job that they can with the loosely cobbled up rag tag bag of assets that holds our money and get us the best deal that they can, before fees, new loan costs and massive salaries for people simply paid to keep some delusional dream alive and feed us spin and manure - waste whatever equity remains. We've earned the equity - don't let us go bust!

Have you called ET and asked them the questions?

 

[kostag]

Re: Equititrust: EQUITITRUST PUBLIC RELATIONS SQUAD: OLMAN OZAD AND KLUA

OZAD, OLMAN, KLUA: DECLARE YOUR INTEREST GUYS - COME ON - IT WILL MAKE IT EASY FOR US ALL.......

KLUA, yes I did.

In December I called EQUITITRUST under the ruse of increased investment.

I spoke to a very nice fellow who seemed to know what he was talking about. In fact, I am sure he was knew his stuff.

I then spoke to a more senior fellow.

I was very easy with my questions about the status quo etc, as I was calling supposedly about new investment.

I was told several times that there was a new re-financing product and that all was on track etc. PDS statements were up to date. External bank facilities were in order etc.

Now, you dont shoot the messanger however as we know from recent events - all was not/is not well; fund raisings are not on track; disclosures are not current and more than likely deceptive, false and misleading; there is a severe cash crisis on hand; their is massive insolvency and bad debt risk and exposure.

Now, what concerns me perhaps the most is that these people (and to be fair, they are employed to do a job, which they were doing well) would have taken my money (so any new investors, please take care) - new money, to pay old bills (a classic PONZI scenario). My money would have been locked in with little prospect of redemption and now as we know, secured by dodgy assets - default loans not paying their interest (who lends money to people who can't even pay interest?)

Now, OLMAN (or the EquitiRUST Director of Public Relations, whoever you may be) used an inappropriate analogy to HITLER in an earlier post which I (and a lot of others) found quite offensive. However to perhaps make my point clearly to OLMAN (and at a level that clearly he likes to operate in) - using his HITLER analogy - call Equititrust and find out how things are going? I think not - a bit like the rabbi calling Hitler in 1944 just checking that all is going well with the ethnic population. (I am sorry for offending one by the way).

I still think that my analogy to good ol' Kolonel Klink and I know nuthink! is more to the point when describing now muzzled EquitiRUST Spinmeister and ex - MFS supremo, and EquitiRUST CEO - David Kennedy.

We need the independent arbiter and watchdog ASIC or perhaps for the NATIONAL BANK to appoint an independent RECEIVER such as McGRATH NICHOLS or BRI FERRIERS who can get the banks paid out and then do the best job that they can with the loosely cobbled up rag tag bag of assets that holds our money and get us the best deal that they can, before fees, new loan costs and massive salaries for people simply paid to keep some delusional dream alive and feed us spin and manure - waste whatever equity remains. We've earned the equity - don't let us go bust!

 

[No Trust]

Choice - Expose on Equititrust

The Choice Expose on Equititrust in June 2008 is a harbinger of things to come...

ASIC have had to take action against Equititrust in the past,


"In April 2008, ASIC took action against Equititrust’s previous advertising and PDS. It ordered that adverts couldn’t imply that the investment is suitable for a particular class of investor such as retirees, or comparable to a bank deposit. ASIC also stipulated that Equititrust can’t advertise words like 'safety', 'secure', 'warranty' without stating the size of the warranty and the size of the income fund. Following the action, Equititrust’s advertising and PDS promptly complied with these new requirements."


"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. " End Quote


http://www.choice.com.au/reviews-an...products/a-warranty-for-your-investments.aspx

Those who had their money deposited in the banks are not facing the hardships that the Equititrust investors have had to suffer.. When people finally realised what they had invested in and wanted their money out their money was frozen and still remains frozen over 2 years later...

The investors need to be given a timeframe as to when they will get their money.

Instead Equititrust is embarking on a self preservation exercise at the expense of the investors...

 

[No Trust]

Its Valentines Day For Equititrust...

It looks like its "Valentine’s Day"for Equititrust and as usual it has taken pressure from the Media, ASIC and the unwavering pressure from the posts on this web site for a public statement as to the true state of affairs to come out...



Update on Equititrust expected to show $35m in impairments


Colin Kruger
Sydney Morning Herald

February 14, 2011


http://www.smh.com.au/business/prop...o-show-35m-in-impairments-20110213-1as0d.html



Thanks firstly needs to go out to Aussie Stock Forums for providing such an invaluable tool on an already excellent web site allowing Australian Investors to have a voice.

Secondly many thanks to Kostag for starting this thread and his unwavering efforts in bringing the Equititrust saga to the attention of the Australian Public.

To the detractors posting against us and trying to stifle the truth i.e. Equititrust and its many non de plums. You can’t stop the truth and you have not done the right thing by investors by withholding it...

The company has to be forced dragging to make a public statement to fully inform the investors. Its analogous to the Egyptian saga recently played out when the regime tried to stop the flow of information. Look what happened there...

ASIC was justifiably concerned, they had to reveal the full financial picture to them. Can you imagine this outfit was trying to raise another 50M from the unsuspecting Australian Public not having released the Interim Financials whilst hiding the 35M of Impairments during that period. It’s incomprehensible and hence the forced ASIC withdrawal of the PDS. Good work ASIC..

"ASIC also expressed concerns over the company's disclosure related to the Equititrust Income Fund, as well as the fund that was to be used for the $50 million raising". Sydney Morning Herald - Which in effect means you MUSt disclose the 50M in impairments over the last 6 months.


"For investors the write-downs add to apprehensions about the safety of their money after Equititrust admitted last week that up to 80 per cent of its loan book might be in default by the end of this year". Sydney Morning Herald

After not communicating and not disclosing the full financial status of the fund the investors are now expecting to maintain the faith in these guys whilst they have racked up 35M in impairments in 6 months. That’s almost 6M a month..

Last Thursday Kennedy told the Sydney Morning herald there was zero impact on the investors, yet he did not reveal there were 35M of impairments to December until he was forced to do so most likely by ASIC.

What happened to Landsolve and the extra expenditure spent there, total waste of investors’ money and approximately 6M a month in impairments. Landsolve was meant to add value to the assets. What happened there. The company has clearly steered off its path..

Frankly Kennedy has not even been there for 9 months and I don’t think he really knows Equititrust's business..

 

[No Trust]

Its Valentines Day For Equititrust...

Typo correction in the above post below:

"ASIC also expressed concerns over the company's disclosure related to the Equititrust Income Fund, as well as the fund that was to be used for the $50 million raising". Sydney Morning Herald - Which in effect means you Must disclose the 35M in impairments over the last 6 months.