BCS brisconnections unit trusts

Corporate RaiderYou said:"Investors bought into TLSCA knowing...

  1. 3,816 Posts.
    Corporate Raider

    You said:

    "Investors bought into TLSCA knowing they had to pay the $1.40 owing once the interim period had ended."

    But what happened if they didn't pay? in this instance the liability was limited to the share value. i.e.

    http://www.asx.com.au/PDF/08-006UBS.pdf

    "
    1.2 Limited recourse Loan
    The Loan is a limited recourse facility whereby the
    recourse of UBS against the Holder is limited to the
    total amount received by UBS on disposal of the
    Underlying Parcel relating to the UBS SFI held by the Holder (whether by exercising a power of sale or
    otherwise). UBS will not take any action against the
    Holder in relation to the Loan to recover any amount
    beyond enforcing the Security Interest or otherwise in
    accordance with the Instalment Deed. This clause 1.2
    does not apply to a Holder’s liability to pay any TFN
    Amount to UBS."


    So the claim that the suffix ca implies a fixed liability security is false: it gives no indication of the extent of liability.

    Readers might note that there have been a number of attempts to relate bcs to tls when the liability structure is quite different.

    It makes you wonder whether dibble was telling the truth:

    "I have obtained legal advice on the sale or transfer of BCSCA shares to an empty shell company / an individual with minimal assets, and have been advised that:

    1) Regardless of whether or not it is deemed a voidable transaction under s.588FE of the Corporations Act, section 172 prevents the voluntary disposition of property with the intention to defraud creditors."

    The utterly poison nature of these securities must surely be indicated by Dibble's claim that to lawfully transfer there ownership might be considered a criminal act. But could anyone tell me if the BCS prospectus has any any clause stating that a condition of purchase of these securities is the ability of the purchaser to cover any liability that they entail? It would be interesting to get a legal opinion on this.
 
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