story in smh

From yesterdays smh.

http://www.smh.com.au/business/barrister-finds-hes-on-the-other-side-20101116-17vvn.html


MAD AS HELL

The decision by the troubled property group Valad (aka Invalid) to leave it until after its annual meeting to write off another chunk of its property portfolio has finally pushed one of its shareholders over the edge.

''This is the last straw as far as I'm concerned,'' said Valad's former managing director and founder, Barry Wynne, in reference to the company's decision (without telling the market) to cut its $92 million mezzanine loan position on the Top Ryde shopping centre.

Wynne is now rallying other disgruntled Valad shareholders to form a committee ''to review the situation''. One possible outcome could be for the committee to call for an extraordinary general meeting and the dumping of the company's board, including its chairman, Trevor Gerber.

''I'm livid about this,'' Wynne said. The Top Ryde write-down will result in another $21 million cut in Valad's already pummelled net tangible asset backing.

''The small shareholders, I think, can assemble a group because it's obscene,'' said Wynne, who has seen the value of his stake fall from about $8 million to about $250,000.

''This is the third year we've had no dividends and our asset backing has dropped again.''

Wynne has been a thorn in the side of the company's board and management since the onset of the meltdown in the commercial property sector. Valad has racked up $1.9 billion of losses in the past three years.

BIG PAY, NO PLAY

Wynne was less vocal than usual at the recent Valad annual meeting due to a recent dental procedure. ''The only people who have done well in the past three years are the directors and senior executives. Shareholders have got nothing,'' he said.

He has expressed outrage not only at the company's falling fortunes but also its ballooning pay packets. While Gerber saw his chairman's and consulting fees from Valad rise 70 per cent to $680,000 last financial year, Valad's managing director, Peter Hurley, recently received a $1.88 million retention payment. Hurley's annual base wage of $799,000 is still up from the $299,425 he was paid in his first full financial year at Valad, 2003-04.

The Valad director Robert Seidler also enjoyed a 135 per cent rise in consulting and director fees to about $400,000 last financial year.