A horror share story

hi all
there is a bit in the background going on and for me I will leave this post here as don't wish to give people any idea that this is going to be addressed in the very near future.
I have been told from one of my guys that there is a couple of suits flapping there wings and ready to take flight and fly into this problem and I for one do not wish to be in that court room.
so for me all the best and don't use any of my posts as any form of advice
 
I reckon the shareprice should be -1.99.

The whole thing maybe massively diluted out and sold later to a willing buyer at a reasonale fraction of the price. The vehicle as far as I am aware is a convoluted one and doesn't actually own anything at the moment.

How are they going to pursue the shareholders ? Debt collectors, yeah right.

The code on the share is a dead giveaway it is an installment or warrant. 5 letters, FPO's 3 letters... Most of the buyers were daytraders and macquarie will not get much from them.
 
contrary said:
The code on the share is a dead giveaway it is an installment or warrant. 5 letters, FPO's 3 letters... Most of the buyers were daytraders and macquarie will not get much from them.
Click to expand...

Yes, and I have bought options before, but also been able to sell them. There are NO buyers at the moment and havent been for quite some time. Although someone bought $500 worth yesterday, and now they have $1million liability.

And no, most of the people who bought them were NOT day traders, just people who thought that infrastucture was a good thing. BCS have said they will pursue people as far as it takes, and that means people will lose their homes and all their assets and be declared bankrupt.:eek: As long as BCS can prove they did make every effort, they do not lose their money. They have sent share holders letters stating that - I have attached some pastes from a generic one.

It is a condition of the underwriting agreement that BrisConnections is obligated to use its best endeavours to recover amounts owing in connection with the second instalment from defaulting security holders. In that regard, BrisConnections will take a vigorous approach to collecting any such
outstanding payments.
Pursuant to the underwriting agreement, among other matters, BrisConnections is required to:
1. use our best endeavours for a period of 6 months after each instalment payment date to recover from each defaulting security holder the relevant instalment required to be paid by
that defaulting security holder;
2. if requested by the Underwriters, permit the Underwriters as agent for BrisConnections to pursue defaulting security holders to recover the instalment required to be paid by the defaulting security holders; and etc
 
Indeed, was just reading about this on a share forum. It was a suggestion raised a few weeks ago, but to implement the Special meeting, someone had to put themselves even more at risk by buying more options. Which Bolton did last week.
 
I don't get it. If it won't stop unit holders from having to pay the extra installments, then what is the point of doing it?
Sounds like a bad idea?:confused:
 
For the record:

They do not have this problem in most other countries because partly paid shares are illegal in most other countries.

This is a very easy problem to solve. MAKE PARTLY PAID SHARES ILLEGAL. Done.
 
boomtown said:
They do not have this problem in most other countries because partly paid shares are illegal in most other countries.

This is a very easy problem to solve. MAKE PARTLY PAID SHARES ILLEGAL. Done.
Click to expand...

FWIW, I agree - they either need to stop the issue of partly paid shares, or they need to legislate to ensure that there is full disclosure BY THE BROKERS who deal in these types of shares.

In my opinion it is Commsec and the likes who should be held fully accountable for this issue. I checked - I was able to pull up a quote and request to purchase shares in this company (I didn't actually make the request), without once being offered a PDS for what I was investing in.

This goes against every other rule for investing in financial products currently in place in this country - why not for shares ? (I know some other online brokers do make a point of stating that these are partially paid shares - but Commsec didn't when I checked).
 
Hey Sim, that is exactly one of the claims of some of the 'victims' for want of a better word. Etrade and NAB online both flash a warning that there are instalments due, just prior to committing to the trade, but Commsec dont.
 
Pushka said:
Indeed, was just reading about this on a share forum. It was a suggestion raised a few weeks ago, but to implement the Special meeting, someone had to put themselves even more at risk by buying more options. Which Bolton did last week.
Click to expand...

i guess when it gets past certain stage, the numbers don't matter
for me, whether it's 10m or 100m i'd have no chance of paying it out, so might as well explore the alternatives.

i was wondering back when the first lady bought 60% of the shares, why didn't someone just do exactly this - buy as many as possible shares and wind down the company, or change the arrangement
 
The "shares" are actually just units in a trust, associated with holding companies and a management company (run by Mac Bank).

Even if you got more than 50% of the units, I think you can only change the trustee - you would have limited control over the holding companies themselves (which are assets of the trust itself, not the unit holders). The trustee also has to act in the best interests of all the unit holders, and could be sued if it tried to wind up the trust.

Finally, Mac Bank, Deutsche Bank and Credit Suisse have I believe about 10% of the total units each. So an individual holders cannot reach 100% or even 75% of the units.

The millionaire factory have would it up very tight to ensure no exposure I think. Although, they have guaranteed the instalments if not paid, so they are on the line for a cool $1bn if no-one pays up!
 
i guess it would be in the best interests of majority of shareholders to dissolve the company now

failing that, i would find a person with already buggered credit rating/history (bankrupt) and transfer all shares to him and put some money aside for him in a swiss bank account. when the time comes to pay, he has no money, and already buggered history anyway so it doesn't matter. then he can start a new life somewhere in Europe. of course i might be missing something here like laws preventing him from doing that.
 
I'm not convinced they would still need to pay if the trusts were wound up.

I think the MD is shitting bricks that it will happen. Its certainly in the interest of shareholders for the trusts to be terminated.

Worst float in history indeed - another feather in the cap of Macq.
 
Also - if you sold your shares into a 2 dollar company BEFORE the installment recod date - I don't understand how you could be liable. I don't think its a transaction to defeat creditors because the liability has not yet crystalised. But I would have to think about that some more. Any insolvency pros on here?
 
if it's an australian company, director of it would still be liable, as he's clearly wasn't acting in the interest of company when buying them.

if it's an overseas company than it's a different story.
 
All of these scenarios are being explored, including others like gifting the shares to a vagrant; gifting them to an already declared bankrupt, starting a shelf company as a PTY LTD and buying the shares off market, the 'players' have been quite creative. They have gone quieter now with their ideas so I suspect something is brewing. I hope so, for their sake.
 
I just heard Trevor Rowe (MD of Brisconnections) speaking on 612 ABC radio. He had the gall to put the spin on this that Brisconnections shares are a fantastic buy - you can buy a $3-value share for only $2 right now! :rolleyes: Of course, I know he has to put a spin on it, but puh-lease - give us credit for being able to see through that. :p
 
Interesting article in the Brisbane Courier Mail today (Business section, pp 28-29).

Apparently the major unitholder has requisitioned a meeting of unitholders in an endeavour to have BrisConnections wound up. Melbourne internet entrepreneur, Nicholas Bolton, was one of many investors who bought units at rock-bottom prices last year (0.1 cents each) and is now up for $47.9M in April and a similar amount in January 2010.

Winding up the company will apparently not get the unitholders off the hook. Legal advice has confirmed that the liquidators would have the right to retrieve instalment payments due.

For the full article, visit:

http://www.news.com.au/couriermail/story/0,23739,25068362-3122,00.html

Cheers
Lynn

P.S. Have just noticed that the info in this article is similar to an article in the Melbourne Age that JamesGG' posted (#65) yesterday.
 
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