The BrisConnections debacle

Feng He was very very lucky. She got out in the nick of time.

 

What happens if you default on the payment? I know it's under-written - but does that mean you still keep your shares?

What would happen if you create a company, purchased a whole heap of shares under the company name, then just let the extra payments default?

 

Hi Samaka,

These are partly paid shares, indicative of the five letter stock code. Ordinary stock only have three letters. This is where people who think they know what they are doing get unstuck using execution only brokers and potentially very burnt. At least a full service broker would tell a client, in xx months you'll have to pay another $1 per share! The execution only brokers are providing an EXECUTION only service and hence don't give you additional notes. I never understand why people think that a $1 share is cheaper than a $10 share, price is mostly irrelevant until you sell. I always use P/Es as an indicator of if a share is cheap.

Apparently it is fully underwritten so any shortfall will be coughed up by the underwriters. You've got to worry which genius thought that partly paid was a good idea...(probably the underwriters who got paid handsomely for it).

If you don't pay any calls your shares can be cancelled (standard rules on partly paid stock).

Cheers,

Dan

 

We will see what happens to Mr Bolton. He is in this situation.

There was talk in the paper that they will sell up anyone who defaults. Including the family home. Sounds like these guys are playing hard ball.

 

It sounds like Trevor is cleaning up with being on all those boards...

 

This article says that Mac Bank have taken an 8% stake to prevent Mr Bolton from winding it up. Interesting play.


Macquarie buys 8% of BrisConnections

 

Investors use fake names to escape payments
17/04/2009

Investors in BrisConnections, the company with a 45 year concession to build and operate the toll road to Brisbane airport, are transferring their stock in off market transactions to fake names in order to avoid paying instalments due on their units in April.
Current regulations prevent the share registry operator from establishing if the new owner of the shares is a real person.
One block of BrisConnections units is now held by Humphrey B. Bear.

Source: The Age

 

We'll he's been out of work for a while now (I think the fact he never wore pants was an issue)...so perhaps a couple of 0.1c units were all he could afford?

 

Nigel,

That's a crack-up

 

The following link could be a better way to get away for those who is trapped..

The Julie Anne Barrow Charitable Trust