wellington capital to take pif to high court, page-7

IMLO We win by making Hutson stay to the end. Allow the transfer to ARL to go ahead and Hutson can spin her performance as exemplary.

This transaction looks to do little more than obfuscate a MASSIVE write down of the value of PIF investors assets. In public, ARL and Hutson's WC will simply be able to point the finger at each other.

The Federal Court said no to the transfer to ARL. And that is likely IMLO the only reason why Hutson's WC is now asking for unit holder's permission to proceed with the transfer.

But that doesn't seem to have been enough for Hutson's WC. WC looks to be asking unit holder approval to cover itself in glory.

Key language perhaps at Page 9 of the Sup Ex Mem : "market value AS AGREED BETWEEN Asset Resolution Limited and the Premium Income Fund..." [emphasis added]. The 30 June 2013 value of our Mortgage Loans is a "proforma" $54.8M.

That's a MASSIVE write down from the $118.9M ($90.75M + $16.39M + $11.76M) that Hutson's WC "transfer[ed]" these assets for.

But wait and see if Hutson tries to write her own history claiming she got $118.9 million for the Mortgage Loans from ARL. That's not all the assets going to ARL either. Hutson's WC 30 June 2012 NTA for OUR fund was $110.486million. How brilliant is Hutson to "transfer" the assets at a profit to NTA. Magic. Bwhahahahaha. ROFL.

Dividing the $118.9million WC theoretically will get from ARL by the 830,532,768 units on issue gives 14.3c per unit Add all the payouts unit holder got and Hutson should be able to lord it around town spin spin spinning that with her brilliance, her Wellington Capital got lots more than the 14c liquidation value unit holders were threatened with back in 2008.

But unit holders won't ever see that much cash because if they vote yes to the ARL transfers the 'units' will be instantaneously written down to around 5c

As for ARL. They got handed $3.743M in cash to pay for liabilities against those assets that were transfered. ARL racked up expenses of $1.34M by the end of 2012. Cash was down to $1.356M. But what’s this: liabilities is up to $3.7465M!!

Please correct me if my numbers are wrong.

So where did more than $2M cash go if the liabilities didn't go down? Hands up who thinks that HWL Ebworth (Wayne Jenvey was a director of both ARL and HWL Ebworth during the reporting period) got their $257 grand in real cash promptly and not 'in specie'.

Feels like Michael King and Jenny Hutson days all over again to me. I.e. pay others in cash while investors get words and numbers and 'special deals'.

Out of the pan and into the fire? What a nightmare!!!