BrisConnections - Macquarie offers small shareholders solution ...
You can almost hear Anna Bligh breathing a sigh of relief.
Macquarie's proposal - if the ASI resolutions are defeated, the underwriters won't pursue the shareholders for failing to pay the $1.00 April call. They will however still forfeit their units.
A 100% loss on their investment but no requirement to pay the $1.00 April instalment nor the next instalment.
It leaves Macquarie and Deutsche Bank (if they agree with this proposal) owning most of the units.
See - Courier Mail - BrisConnections investors get lucky break.
posted by Concerned Ratepayer at 6:35 AM
2 Comments:
Courier Mail:
BrizConnections' plan under threat
April 08, 2009
A PLAN to relieve BrisConnections' retail investors of future payments on the tollroad company's securities is under threat due to a lack of agreement between the joint underwriters.
BrisConnections, in a statement to the stock exchange this afternoon, said its two underwriters, Macquarie Capital Advisers and Deutsche Bank, and other parties haven't been able to agree terms on a proposal to not pursue retail investors for $1-a-unit payments required on April 29.
It said Macquarie has said it would use "all reasonable endeavours" to seek agreement with Deutsche Bank on proposal terms but warned unitholders that there can be "no assurance" that a deal would be reached.
In the statement, BrisConnections said its board was "very disappointed" that no proposal has been finalised.
It said its underwriting agreement with Macquarie and Deutsche currently required BrisConnections to collect outstanding amounts from unitholders who fail to pay their instalments.
5:33 PM, April 08, 2009
Sydney Morning Herald:
BrisConn shock: Deutsche pulls out
April 8, 2009
Deutsche Bank has pulled the pin on a potential lifeline for BrisConnections unit holders who are facing millions of dollars of liabilities in the embattled toll-road company.
Macquarie Capital Partners, co-underwriter of the BrisConnections float with Deutsche, yesterday proposed that the investment banks not pursue retail investors who defaulted on the next $1 per-unit payment, which is due on April 29.
That Macquarie proposal was conditional on none of the resolutions proposed by rebel shareholder Nicholas Bolton being successful at next week's extraordinary meeting.
It would also mean the two banks split an estimated $270 million write-off between them.
Macquarie this afternoon informed BrisConnections that it has not been able to reach an agreement with Deutsche and other parties on that proposed deal.
That means hundreds of small investors in the disastrous float of BrisConnections, who thought they had received a potential lifeline, will now have to pay their instalment debts.
In a statement to the ASX, BrisConnections said: "Macquarie and Deutsche Bank and other parties have not been able to reach agreement."
The statement added: "Notwithstanding, Macquarie will use all reasonable endeavours to seek agreement from Deutsche in relation to the proposals to pursue retail unit holders in relation to the instalment of $1 per unit due on Aril 29."
A vote to wind up BrisConnections will be held at Brisbane Convention Centre on April 14.
The Macquarie proposal was effectively buying the votes of retail investors before that meeting.
Such a vote could trigger provisions in the company's banking covenants, allowing senior lenders, including ANZ, to withdraw more than $3.1 billion of finance for Brisbane's Airport Link, jeopardising the $4.8 billion project.
5:40 PM, April 08, 2009
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