The explanatory memomrandum for the EGM is noticeably bereft of any assessment of the what the present value of the future cashflows of the 45 year concession are. Probably because in the post-GFC world, the financial structure of this deal would be as viable as the MFS business model.
Note also that there is no Independant Experts Report supporting the vehement assertions of the directors to vote NO to the winding up motion. I suspect that they know that no respected INDEPENDENT expert would opine that it is in the best interests of unitholders for this project to continue, or, that it is in the best interests of unitholders to pay the remaining instalments.
The problem here is that the Management company is not acting in the best interests of unitholders - they are acting in the best interest of the project sponsors and the management company themselves, Hopefully the courts will see throught the charade and recognise the higer order fundamental contract that exists between the unitholders and the RE - that is to act, above all else, in the best interests of unitholders.
BCS Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
