Equititrust?

Re: Equititrust: they have finally gone MAD !

Is EQUITITRUST absolutely mad..... its a good indicator that loans are not paying their interest, so that we can step in and run the project and somehow fund all the costs and also pay interest to ourselves so that we can pay you some interest???? is that what they are saying to us? stark ravvving mad!

EQUITITRUST SAID: In effect, the increased percentage is an indicator of our strategic initiatives to take control, and investors should not be alarmed by it.

ASICK said:

I hope these are helpful:

Update, page 4, "... Historically, for most development loans and some commercial loans undertaken by the Fund, we have capitalised interest, as this is the nature of the lending performed by the Fund, whereby the interest is included in the loan facility and deducted progressively. Over the past three months, however, we have, with few exceptions, stopped the capitalisation of interest so as to allow the loan to go into default and thus enable Equititrust to take enforcement action for the control of it. ..."

"... Capitalizing interest is usually observed in deferred or insufficient payments, where the interest is carried over to succeeding payment periods ..."
http://www.banks.com.au/tools/glossary/c/capitalising-interest/

I'm puzzled by the manager's statement in the above excerpt because it seems to suggest interest capitalization is a condition of lending which the fund is not contractually bound to. Capitalized interest is a great way to reduce fund's security margin by increasing the debt held about that security. Makes everything look good when it may not necessarily be so (also see "Accrued Interest").

Update, page 4, "... The difficulty with this strategy is that whilst it allows us ultimate control of the borrower’s underlying security for the loan, it does mean that our loans in default percentage has increased substantially and will continue to do so. In effect, the increased percentage is an indicator of our strategic initiatives to take control, and investors should not be alarmed by it. ..."

Don't be alarmed about cash flow drying up - but give some thought to the rising impairments and whether or not the fund will be capable of paying your interest payments.maybe this is one of those times you have to think about capital/interest conundrum? Maybe the manager could have provided members with an assurance about the fund's ability to pay interest to members for the foreseeable future?

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Equititrust Loan Default Disaster

The mind absolutely boggles at this kind of reasoning.. Do they think investors and the general public are stupid.

Of the remaining loan assets over 30% have exposure to Dudley Quinlivan and his companies. All of which are now in default..

The investors now see the "Real Equititrust" and the spivvy mob they lend to on the Gold Coast. Michael West of the Sydney Morning Herald was correct in his analysis of incestuous nature of the Gold Coast.

http://www.smh.com.au/business/the-gold-coast-train-wreck-20080912-4f4n.html

"Add to this the various exotic accounting treatments, not least the widespread practice of capitalising interest.

Unless new investors' funds are coming into the fund, there is no liquidity to pay returns.

Make no mistake, Raptis is by no means the most precarious of the property developers on the Gold Coast and City Pacific and Asset Loan will not be the only spivvy lenders to fall."

mwest@fairfax.com.au

It seems that Michael West's predictions are now being played out at Equititrust

Re: Equititrust Loan Default Disaster

YES - after already substantial impairment write downs (about $10Million) which as ASICK has pointed out really come out of our money anyway, I estimate that QUINLIVIN owes about $59.2Million plus interest and costs - which is about 24% of total loans of about $254million..... 24% - just one man, holds 24% of the entire loan book - all effectively vacant land in second rate areas with dodgy valuations to boot.... our best hope for recovery it seems is to sue the valuer - our best hope for recovery I suspect is to sue the Manager - perhaps this explains why Wayne McIvor and Tom Haney jumped ship in May 2010 and in came the MFS mob......some South Australian mob has about 16% in one loan where the valuation is atleast 25% off the pace (Equititrust's view of it) - then there's $24.1million on the Windsor Turf farm - 10% of the whole loan book on a turf farm where we now see there is litigation in regards to the security and its enforceability - this is not a loan book - its a 'who's who' of failed developers who have been granted commercial largesse with our money by some manager who claims some lending credential.... who are we kidding.... can anyone spot one good loan in the 90% / 22 loans listed? maybe the first mortgage (I am guessing it is a first mortgage) in Middle Harbour Sydney $3.3million out of $250million - the rest is a litany of festering commercial rubbish and no wonder no-one wants to re-finance it; the National Bank and Bank of Scotland want out; and Equititrust cannot recover any of it in the last 2 years or so..... so much for 37% default loans - we have hit close to 90% default loans already and its not even end of February 2011!

No Trust said:

The mind absolutely boggles at this kind of reasoning.. Do they think investors and the general public are stupid.

Of the remaining loan assets over 30% have exposure to Dudley Quinlivan and his companies. All of which are now in default..

The investors now see the "Real Equititrust" and the spivvy mob they lend to on the Gold Coast. Michael West of the Sydney Morning Herald was correct in his analysis of incestuous nature of the Gold Coast.

http://www.smh.com.au/business/the-gold-coast-train-wreck-20080912-4f4n.html

"Add to this the various exotic accounting treatments, not least the widespread practice of capitalising interest.

Unless new investors' funds are coming into the fund, there is no liquidity to pay returns.

Make no mistake, Raptis is by no means the most precarious of the property developers on the Gold Coast and City Pacific and Asset Loan will not be the only spivvy lenders to fall."

mwest@fairfax.com.au

It seems that Michael West's predictions are now being played out at Equititrust

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Re: Equititrust Loan Default Disaster

kostag said:

YES - after already substantial impairment write downs (about $10Million) which as ASICK has pointed out really come out of our money anyway, ...

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Sorry Kostag, I hope I didn't say or infer that. The fund now has impairments of $12m (as at 31 December 2010) which sum is being deducted from the capital warranty, not from members's capital. The manager's been out plugging holes in your fund for a couple of years at it's own expense: swabbing money off the deck, and then diving into the water to plug holes in the hull, just to keep passengers on the good ship "Equititrust" from feeling alarmed! - very strange.

It's just a guess, but I think the actual value of impairments will be more than those affecting the warranty and there must be NO return for the manager on it's capital warranty investment, or alternatively, income has been reduced dramatically.

One aspect of accrual accounting and capitalization of interest is that when paying loans dry up and asset sales slow down, then the rot really starts to set in.

Members should keep in mind that we're nearly into March 2011, nearly 3 months AFTER the impairments the manager is talking about. The reports always come months and months after critical events. Every nasty event seems to follow on about three or four months after a report period.

Loans to King Con - Fully Confirmed

Equititrust reveals details of problem loans to 'King Con'

Colin Kruger
February 25, 2011


http://www.smh.com.au/business/equi...problem-loans-to-king-con-20110224-1b76g.html


"Asked why the company did business with the controversial developer, a spokesman told BusinessDay: ''Equititrust assesses all loans in accordance with a comprehensive due diligence process which is reflective of the prevailing economic and market conditions and places heavy reliance upon the quality of the security offered.''


If given the choice and investors were told that loans would be made to Dudley Quinlivan how many investor's would have parted with their money. It is no wonder that ASIC, Commonwealth Bank, NAB and Bank of Scotland had their respective concerns.

It is copy book Gold Coast.. All of Australia can now see that lending to a character who was named "King Con" in Queensland Parliament is an IDIOTIC and reckless thing to do with retiree investors’ money. If there is a loss on these loans the directors of Equititrust and the so called credit committee should be held personally liable.


The loan book is a second rate mish mash of loans. Obviously no other financial institution will refinance these developers, Equititrust cannot resell the sites quickly for fear of taking a "massive bath" in terms of the resale price. The property in Ipswich or as Equititrust quaintly puts it, "West of Brisbane" is the biggest headache as they have been sitting on it for over a year and now have to obtain development approvals to try and make it work with less lots.


After revelations regarding these loans, Equititrust’s credentials as a prudent and conservative financier have been put in question; it is certainly not a property developer.

The question I have now is that what faith do the investors have in Equititrust solving this problem when they were the ones who led the investors into this quagmire by lending the money out in the first place.. It is illogical for Equititrust to now say trust us we can sort it out, we will just put another cap on and become a property developer. This is another emerging Conflict of Interest..

Concerns about Mr Quinlivan have been around for sometime. This from 2005.

http://www.jenman.com.au/news_alert.php?id=66

Loans to King Con

As Judd correctly points out above in his link, Quinlivan was known for his activities for years. Yet Equititrust felt it was a good bet to risk retiree investors’ money on his latest foray into property development.

McIvor as CEO and founder was at the helm of the ship then and was involved in approving all those loans to Quinlivan, what is he going to say to the retiree investor's now ? Don’t worry I will put my house on the line to cover any losses... Don’t hold your breath.. Although if the directors really did want to show that they are 100% behind the investors how about buttressing those guarantees to investors with the titles to their own homes. This magnanimous gesture would be appreciated by the investors whose money was risked on "King Con" anything less is a cop out..

Re: EQUITITRUST: LANDSOLVE IS A JOKE

The CEO of EQUITITRUST Mark McIvor set up and is CEO of LANDSOLVE. He made the loans of circa $60M to KING CON. In the latest loan report, KOLONEL KLINK KENNEDY - who obviously sees, hears and feels nothing - states that they are looking at suing the VALUER - however in this statment (COLIN KRUGER SMH) they claim that loans were only made to KING CON after rigourous research, heavy reliance upon the quality of the security , and finally comprehensive due diligence process which is reflective of the prevailing economic and market conditions and places so the VALUER has his defence right there BUT worse, McIVOR claims to now have the skillset to manage and workout $200M of screwed up loans using the same due diligence and analysis - God help us all!

No Trust said:

Equititrust reveals details of problem loans to 'King Con'

Colin Kruger
February 25, 2011


http://www.smh.com.au/business/equi...problem-loans-to-king-con-20110224-1b76g.html


"Asked why the company did business with the controversial developer, a spokesman told BusinessDay: ''Equititrust assesses all loans in accordance with a comprehensive due diligence process which is reflective of the prevailing economic and market conditions and places heavy reliance upon the quality of the security offered.''


If given the choice and investors were told that loans would be made to Dudley Quinlivan how many investor's would have parted with their money. It is no wonder that ASIC, Commonwealth Bank, NAB and Bank of Scotland had their respective concerns.

It is copy book Gold Coast.. All of Australia can now see that lending to a character who was named "King Con" in Queensland Parliament is an IDIOTIC and reckless thing to do with retiree investors’ money. If there is a loss on these loans the directors of Equititrust and the so called credit committee should be held personally liable.


The loan book is a second rate mish mash of loans. Obviously no other financial institution will refinance these developers, Equititrust cannot resell the sites quickly for fear of taking a "massive bath" in terms of the resale price. The property in Ipswich or as Equititrust quaintly puts it, "West of Brisbane" is the biggest headache as they have been sitting on it for over a year and now have to obtain development approvals to try and make it work with less lots.


After revelations regarding these loans, Equititrust’s credentials as a prudent and conservative financier have been put in question; it is certainly not a property developer.

The question I have now is that what faith do the investors have in Equititrust solving this problem when they were the ones who led the investors into this quagmire by lending the money out in the first place.. It is illogical for Equititrust to now say trust us we can sort it out, we will just put another cap on and become a property developer. This is another emerging Conflict of Interest..

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Re: Equititrust: NIGHTMARE ON ELM STREET ?????

WITH 22 LOANS OR 90% OF THE LOAN BOOK BEING IN DEFAULT STATUS - HOW CAN THIS PROJECTION BE ANYTHING OTHER THAN HALLUCIJENIC:

"The risk of significant further impairments is reducing and asset realisations should be sufficient to ensure that (the fund) returns to a liquid status during 2011," Mr Anderson said.


MEET DAVID ANDERSEN:


http://www.businessspectator.com.au/...W?OpenDocument

''....Former chief financial officer of failed company MFS Ltd David Anderson has refused to provide a signed statutory declaration to liquidators of his personal finances, Fairfax media reports.

He told the NSW Supreme Court on Thursday that he didn't want the "homework".

Mr Anderson told the court he had just got a new job as a strategic solutions director at Equititrust and was earning $250,000 per year, Fairfax said....'


TODAY’S GOLD COAST BULLETIN - DAVID ANDERSEN IS NOW THE SPOKESMAN:
THE frozen Gold Coast-based Equititrust Income Fund is expected to become liquid this year, despite one of its borrowers being placed in the hands of receivers.
The Chevron Island-based funds manager said the appointment of receivers to Croftworth Property Holdings -- a company linked to two-time former bankrupt Dudley Quinlivan -- "was neither unexpected nor caused concern".
Westpac moved last week on Quinlivan's company, whose main Gold Coast asset is a strata-titled office block at 100 Bundall Rd, Bundall. Croftworth also had been slapped with a winding-up order by the Australian Taxation Office.
Equititrust chief executive David Anderson said the Equititrust Income Fund had no Croftworth securities in common with Westpac.
"We are working with the bank's receivers as we have adjacent properties and a joint campaign may be beneficial to both," he said.
"Discussions with the bank commenced well before receivers were appointed."
Mr Anderson said Equititrust had been "strategically involved" with Mr Quinlivan's assets and had "influenced direction for more than 12 months".
"As a general rule, we consider it more effective to work with a borrower than formally appoint a receiver and, ordinarily, only appoint where a borrower has demonstrated an unwillingness or inability to work with us."
In an update released yesterday to investors, Equititrust revealed it was expecting to become liquid this year after freezing redemptions more than two years ago. If it does so, it will be become the first Gold Coast-based fund to recover after a torrid three years for the sector.
Equititrust said it had realised $120 million in loan repayments over the past two years, with a total of $99 million repaid to the Commonwealth Bank and the National Australia Bank.
It has taken a $12 million hit against its own investment in the fund, reducing its subordinated debt buffer to $28 million. The company said it had absorbed an additional $30 million in impairments over the past three years.
"The risk of significant further impairments is reducing and asset realisations should be sufficient to ensure that (the fund) returns to a liquid status during 2011," Mr Anderson said.

AND WHAT A GREAT JOB THEY'VE DONE:

Mr Anderson said Equititrust had been "strategically involved" with Mr Quinlivan's assets and had "influenced direction for more than 12 months".

so they've known about this mess for a year - thanks for telling us and disclosing in the last PDS where you sought to trouser $50M!
⨪

Equititrust Loans To Quinlivan

Notice the Gold Coast Bulletin twist to the truth, no mention of the 80% loans in default or the failed capital raising or ASIC intervention or conflicts of interest.. No mention of the poor investors either who were taken for a ride whilst Equititrust loaned money to King Con...

Thank god for credible papers across Australia like the Sydney Morning Herald and Courier mail which people actually read..

If the Gold Coast Bulletin printed anything else but spin for these guys how would they get any other gullible southern investors..

Re: Equititrust Loans To Quinlivan GOLD COAST PRESS

NICK NICHOLLS of GCB is a respected journo and whilst protective of his own patch - give him a chance to digest the state of the loan book (22 loans or 90% default) and he wont go soft. This deserves solid public scrutiny and dont wory he is up to the task....

No Trust said:

Notice the Gold Coast Bulletin twist to the truth, no mention of the 80% loans in default or the failed capital raising or ASIC intervention or conflicts of interest.. No mention of the poor investors either who were taken for a ride whilst Equititrust loaned money to King Con...

Thank god for credible papers across Australia like the Sydney Morning Herald and Courier mail which people actually read..

If the Gold Coast Bulletin printed anything else but spin for these guys how would they get any other gullible southern investors..

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Re: Equititrust: NIGHTMARE ON ELM STREET ?????

kostag said:

NICK NICHOLLS of GCB is a respected journo and whilst protective of his own patch - give him a chance to digest the state of the loan book (22 loans or 90% default) and he wont go soft. This deserves solid public scrutiny and dont wory he is up to the task....

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Sorry Kostag, I'm suffering with the idea that Nichols would worry about detail at all - I'd love to share your view, but I just can't.

;Kostag; said:

"The risk of significant further impairments is reducing and asset realisations should be sufficient to ensure that (the fund) returns to a liquid status during 2011," Mr Anderson said. ...

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'LIQUID'? ho ho ho ...

Re: Equititrust: LIKLEY IMPAIRMENT/LOSSES

No-one is putting pen to paper, so let's take a look - bear in mind some need DA, some need work, all need on-going new capital etc - so all being sold essentially as vacant and distressed sites with inflated valuations:-

Loan1: North NSW coast industrial - allow 10% $3.3M

Loan 2: SA land - likley realisation $20M - allow $19M

Loan 3, 4, 5 Quinlivin: allow $36M w/down on Ipswich vacant site - others Bundall assume OK - loan 5: assume 50% - so a total w/down on King Con: $40M

Loan 6: Port Augusta site: allow 50% - $2M

Loan 7: Mackay: allow 33% - $1.7M

Loan 8: Vacant land - Lennox head: allow $1.6M

Loan 9: North Qlsd - substantial hit likley - $5M

Loan 10: assume collectible

Loan 11:Maclean: not zoned: $2.25M

Loan 12: Yamba: land: $3.5M

Loan 13: slight agreed write down $300K

Loan 14: likley repayment

Loan 15: DA delays forced sale - likley write down $4.3M

Loan 16: assume repayment

Loan 17: likley repayment

Loan 18: high rise Gold Coast site: shaky JV proposal: likley write down $4M

Loan 19, 20, 21: turf farm: litigation: shady identities: assume 50% recovery $12million write off

Loan 22: seems OK

TOTAL ASSESSED WRITE OFFS: $98.95M

less: BALANCE HELD IN WARRANTY FUND: $28M

LIKLEY INVESTOR HIT: $70:95Million I reckon 70cents in the $ back - best case!

this is my tip!!! see how close we are

OLMAN , ask David Kennedy if he will still go to print and confirm a 100% capital repayment to all investors.

Good afternoon Kostag.

If you are right, what do you make of your interest payments you've been receiving for the last periods and whatever you get in the future? You'll pay tax on your interest payments from the fund (distribution), but, according to your figures, you'll lose capital, how do the two sit together? (since capital losses cannot be written off against income). If you're wrong, then it's a moot point - generally speaking this is a tax issue, and if you don't pay tax, then it doesn't matter.

I couldn't imagine that the impairments come over the fund in an instant. The manager admitted to having capitalised interest (which now seems to be probably lost) to a large extent within the fund: given the now sudden appearance of substanital impairments, wouldn't the manager's receipt of the return from the capital warranty raise an eyebrow?

Just when did things go wrong? If it's the case that the manager has been running around plugging holes in fund assets, then I'd guess investors should be entitled to be shown exactly how that money was applied, the reasons why investors weren't informed so they might make decisions to protect their investments, and amend the fund's account to reflect the external transactions which have not been disclosed to members.

You guys have been investing in a fund for years, and it seems you didn't have a clue that the fund was stressing for at least a couple of years, because the stresses where not disclosed in your accounts - I can't see how that should be allowed to stand without question.

As spoken to above, just a couple of months (or maybe days, because I don't know the actually dates of the transactions) of the manager existing $42m ($42m two-step), the fund is frozen. Cause to raise an eyelid?

Within just months of the manager existing with a further $13m (or whatever) in returns from the capital warranty, the fund discloses substantial impairments. Cause to raise an eyelid?

It's your investments, it's up to you what you do about it.

Re: Equititrust: GOOD POINTS - I AM ROOTED

I AGREE - I HAVE MADE COMMENTS HEREUNDER .........

ASICK said:

Good afternoon Kostag.

If you are right, I HAVE TO PAY TAX ON THEM FOR EACH YEAR what do you make of your interest payments you've been receiving for the last periods and whatever AGAIN, MADNESS PREVAILS - IT IS INTEREST AND TAXABLE you get in the future? You'll pay tax on your interest payments from the fund (distribution), but, according to your figures, YEp, I RECKON PROBABLY 30% DOWN you'll lose capital, how do the two sit together? (since capital losses cannot be written off against income). If you're wrong, then it's a moot point - generally speaking this is a tax issue, and if you don't pay tax, then it doesn't matter.

I couldn't imagine that the impairments come over the fund in an instant. The manager admitted to having YES - WE NOW KNOW THIS IS 90% OF THE LOAN BOOK OR 22 LOANS capitalised interest (which now seems to be probably lost) to a large extent within the fund: given the now sudden appearance of substanital impairments, YES - BUT WHAT CAN WE DO ???? wouldn't the manager's receipt of the return from the capital warranty raise an eyebrow?

I GUESS STARTED TO HIT THE FAN IN FEBRUARY 2009 Just when did things go wrong? If it's the case that the manager has been running around plugging holes in fund assets, then I'd guess investors should be entitled to be shown exactly how that money was applied, the reasons why investors weren't informed so they might make decisions to protect their investments, and amend the fund's account to reflect the external transactions which have not been disclosed to members.

You guys have been investing in a fund for years, and it seems you didn't have a clue that the fund was stressing for at least a couple of years, because the stresses where not disclosed in your accounts - I AGREE - YOUR CALL IS LIKE AN ECHO IN THE VALLEY OF DESPAIR I can't see how that should be allowed to stand without question.

As spoken to above, just a couple of months (or maybe days, because I don't know the actually dates of the transactions) of the manager existing $42m ($42m two-step), the fund is frozen. Cause to raise an eyelid?

Within just months of the manager existing with a further $13m (or whatever) in returns from the capital warranty, the fund discloses substantial impairments. Cause to raise an eyelid?

It's your investments, it's up to you what you do about it.

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Re: Equititrust: GOOD POINTS - I AM ROOTED

kostag said:

I AGREE - I HAVE MADE COMMENTS HEREUNDER .........

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What can you do?

You can make a complaint to ASIC about every issue that concerns you.
Here is the link:
https://www.edge.asic.gov.au/008/complaintV005?get/complainant/t=60a37098f872ae10ad1b51e2473d6259f26cad95

You will not get any support from ASIC unless you make a formal complaint.

Do not waste your time phoning or writing to ASIC, you must make a formal complaint.

Re: Equititrust: not going to get anyone any money back!!

wont get any investors any money though, will it ??

ASICK said:

What can you do?

You can make a complaint to ASIC about every issue that concerns you.
Here is the link:
https://www.edge.asic.gov.au/008/complaintV005?get/complainant/t=60a37098f872ae10ad1b51e2473d6259f26cad95

You will not get any support from ASIC unless you make a formal complaint.

Do not waste your time phoning or writing to ASIC, you must make a formal complaint.

Click to expand...

Re: Equititrust: THIS FORUM AND OPEN FLOW OF INFORMATION

Despite the attempts of EQUITITRUST and David Kennedy to frustrate and mislead this FORUM with false names and information etc, isn't interesting that with persistent probing media and some investors (and others) just sticking to the knitting and probing away, eventually the truth comes out.

Notice how quiet these USERS -

Equititrust
Ozab
Katie
Olman
Buffetman,

are.

Not much to say, I guess.

Equititrust Loans To Quinlivan

Well is impossible to defend the "Indefensible"..

Re: Equititrust: the HOSPITAL PASS? a new CEO

in some deft footplay, looks like the Equititrust "CEO" hot potato has been flicked from founder and former head honcho, Mark McIvor across to David "Kolonel Klink" Kennedy (dont mention Buffetman or Ozab or Katie) , who in the face of his "outing" (ie: multiple 'personalities') on this website, has done a last minute "hospital cut out pass" across to the financially fleet of foot David "dont mention the MFS supreme court examination" Anderson.

Dave did a superb job 'forgetting' (Allan Bond would have been proud) his executive actions (or lack of) at MFS in the dying days of that financial car crash, when the MFS management played pass the parcel with investor millions, as the doors came slamming shut!

Perfect man to have at the wheel and to be looking after the Spinmeister Bunker of Chevron Island, as mis-management tries to eke out some return from the Quinlivan and Constaninidis $90Million train smash.

Hope Dave takes some notes this time (in case of memory loss) - don't forget to have a pad and pencil handy.

GOLD COAST BULLETIN 25-2-11:

Equititrust chief executive David Anderson said the Equititrust Income Fund had no Croftworth securities in common with Westpac.

I predict out of $60M loaned to Quinlivan Group - expect write downs of $40Million - watch this space. Ipswich? post floods? vacant land? DA issues? worth $60Million? dillusional?