This has all gone silent. Does anyone know if the above suggestion is correct, i.e. David Barrow has not paid the installments? Neither he nor Jim Byrne ever answered my question about nil responsibility on those from whom they took the units.Looking at the top 20 shareholder list for BCSCB it appears that David (JAB_Charity) has not coughed up the $1 second instalment for too many (if any) of his 0.5%+ BCSCA units.
Simple answer is this:
Set up a $2 shelf company. Process costs about $1000
Do an off market transfer of shares to that company.
The day the installment comes due, declare the company as insolvent and unable to service its debt.
As its director, you did your due diligence to declare as soon as it was known that the company could not meet its obligations, and liability is limited to the original $2.
Heck, you can even get people to pay you to take the shares off their hands, and draw a directors fee before the installments are due
Somehow, I doubt people would get away with this, but I'd say there'd be some catch-all fraud law, instead of a specific law that prevents them doing this.
LOL I think nick bolton might have read this post.
I would say no given that defaulting unitholders have been offered the period up until the public auction this Friday to pay the second instalment.any updates on this? are people being persued for money? did JAB and jim make a dime? are the shares value atm?
I think Humphrey Bear is only interested in being a silent partner.
I think this Wednesday (June 17) is D-day for the underwriters to cough up on the instalment shortfall.
June 19, 2009 SMH
Page 1 of 2 Single page view
TREVOR ROWE, the embattled chairman of BrisConnections, might have reason to sleep a little easier, 11 months after the toll road made its ill-fated listing on the sharemarket.
The road project has confirmed Macquarie and Deutsche Bank coughed up the $278 million shortfall not paid by unit holders to fund the group's second $390 million listed instalment.
The lingering question now will be how hard BrisConnections will chase about 140 defaulting unitholders. These include the purported hedge fund represented by the banned company director Jim Byrnes, the IT entrepreneur Nicholas Bolton and his family friend John Williams, who owes $76 million.
There is also the issue of the ASX having the discretion to delist the company if it deems the trading in its securities too illiquid. Yesterday about $4000 of securities changed hands.
One positive this time around is the illiquid trading could at least stop small shareholders from buying large chunks of the company and exposing themselves to the third instalment.
And, unlike the first instalment which crashed from $1 to 0.1c (allowing shareholders to assume liabilities 1000 times their outlay), shares in the second instalment have only halved in value, meaning it is less likely there will be as many defaulters when the next instalment is due next year. If there is a next instalment.
They won't get much if they do.Apparently the underwriters have duly paid up.
Now I guess we wait to see how diligently Brisconnections chases up the people who defaulted on their payments.
BrisConnection votes against resolution
June 22, 2009
The managers of troubled toll road builder BrisConnections have survived a bid to oust them, as it was revealed excavation costs for the multi-billion dollar Airport Link project will blow out.
BrisConnections stapled security holders were asked at a meeting on Monday to vote in favour of three resolutions, including one to remove BrisConnections Management Co Ltd (BCML) as the responsible entity of the holding trust.
BrisConnections chairman Trevor Rowe said Brisbane Toll Road Link Pty Ltd (BTRL), which put up the resolutions, was unable to vote as it had failed to pay a second instalment totalling $59.7 million due in April on partly paid stapled units listed on the stock exchange.
Some 106 million or 99.9 per cent of votes cast by stapled security holders were against the removal of BMCL as the responsible entity, with only 10,000 votes in favour.
The second and third resolutions, to appoint Armstrong Corporate Capital Ltd as the new responsible entity and to defer payment of the second $1 per unit instalment, were also voted down.
Businessman Jim Byrnes, who represents BTRL, did not appear at the general meeting in Brisbane.
Controversial Sydney businessman Jim Byrnes is offering to help defend Brisconnections investors facing legal claims from the company - for a fee.
Mr Byrnes claims to have been able to "arrange for a firm of lawyers and counsel to act to set aside the statutory demands on a no-win, no-fee basis".
But Mr Burnes is asking for $2000 from corporates and $5000 from individuals.
In a letter to investors he says this is the 'only cost to be funded upfront'.
He asks for it to be paid to Australian Litigation Funders, which is owned by his wife.
BrisCon launched suits to recover unpaid $ 1 per unit instalments from 140 defaulting shareholders on April 29. Mr Byrnes tells individual unitholders that for $5000, Australian Litigation Funders will manage their defences.
There's absolutely no suggestion that the $5000 will cover all costs.
The letter says "it could cost hundreds of thousands of dollars to defend the claims".
But Mr Byrne, who concedes he may be paid by ALF "if ALF asks him to assist it", suggests that by getting together, unitholders may be able to cut their eventual defence costs.
...The last I heard of Bolton, Brisconnections were still chasing him for $1.2 million of outstanding debt for a parcel of shares that he missed transferring.
Reading the MAFCA June 19 fund update one gets the impression that unitholders are being softened up for an early call on the $0.40 final instalment.Remember MAFCA - the Multiplex Prime Property Fund - which this thread predicted would become the next Brisconnections?
It would be interesting to know whether or not payment of this instalment is underwritten.
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