Looks like these $160m loans that are likely to be or are impaired are staying in the PGC group .... PGC equity is $260m ... market cap is $170m ..... hell some capital will need to be raised somewhere
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Looks like these $160m loans that are likely to be or are impaired are staying in the PGC group .... PGC equity is $260m ... market cap is $170m ..... hell some capital will need to be raised somewhere
Have they been keeping up with their continuous disclosures on the increasing size of the impaired loans?
Last mention was at PGC half year when PGC set aside $25m for underwriting Marac property loans .... but problem abviously a bit worse than that
Of note in the stiff they announced the other day they said that the property loans needed to managed by a 'patient' investor which sort of said that heck it might take years to get our money back but we will eventually
As for disclosure I would have thought something before know as $160m of impaired or could become impaired loans is a hell of lot ... relative to the total loans and equity of both marac and the parent company
The bench mark thinking of these finance companies should be, once the % sectors of their loan book are disclosed how many of these sectors,
1) Would be underwriten by a reputable share broker at the share brokers due dillegent valuation if those sectors would be floated off.
2) How many of those "floats" would be over subscribed
In this present market most of the loan valuations should be written down to "receivers valuations" imho.!
Interesting article on stuff as PGC shareprice rises off its lows
http://www.stuff.co.nz/business/indu...of-uncertainty
So the prospect of a capital raising is a problem for the shareprice
and
.........rumours in the market that Mr Kerr and PGG Wrightson director and former chairman Craig Norgate did not get on.
and
Pyne Gould was a tightly held company with shares often owned by inactive investors or family estates, Mr Williamson said.
"Of course a lot of those estates won't have available funds to take up their share if they're asked to help fund [a capital raising].
"I think you'll find Perpetual Trust handle a lot of [the] estates."
(my comment) isn't Perpetual Trustees PGC owned ... so the Trustee of Marac ... and prob the old farming family estates holding PGC shares ... all sounds a bit incesteous (end of my comment)
and
Mr Ott said it was hard to judge any issues related to the timing of disclosure about the property loans.
Comment from Chris Lee regarding liability of Trustees in finance company collapses:
If Perpetual Trust, owned by Pyne Gould Corporation, has not provided for the potential cost of defending itself (and possibly losing) then in my view it has erred. We need these issues resolved in court.
Any thoughts?
Sounds expensive if anybody does sue them .... it sounds like that they (and others) were pretty lax in their trusteeship
It also seems a bit incesteous that Marac can use Perpetual to be their trustee to keep an eye on the business ... its like little brother seeing that big brother doesn't get into trouble ..... where's the independence of the Trustee in this case.
But it looks like the big boys can get away with these sort of things eh