Unit holders. Annuity bond holders which are unsecured. Debenture holders who are secured against all assets basically.
My anger is that once again the people that are running the parade make these sweeping statements such as The interest will keep accruing and the whole lot will be up for redemption next year etc etc. Its vague and if you collapse it now there will be losses. The audience of debenture holders who were the only secured creditors dont understand that there is a trustee who looks after their interests in a default.
So they get this proposal to stop payments of interest otherwise TODHA would be in default on 1 July and the trustee would step in. They agree to waiver of the covenants and they allow the same company with a change of name to manage the business who clearly state they are managing it for the unit holders , annuity bondholders and the Debenture holders. The first 2 parties held unsecured assets yet they are being considered.
On top of which the process is that if you go behind the process it suits everyone because 9 months down the line they just tell you that we have taken our fees and we are going to put the property up for auction but we harvested the crop and those funds went here there and everywhere etc etc.
Very often the poor person who bought these secured debenture are pensioners who wanted security of income. They cannot grasp the fact that they have lost their funds so they say well lets hang in maybe in a year we will get repaid in full. An asset that is distressed needs to be addressed and normally that's capital and a plan or it must be put into play. You have already lost something and the management company now says the property isn't worth what its in the books at - that 3 months after they approved a new valuation absis based upon TIM having a lease.
My frustration is that even the politicians want this to drag out the longer it drags on the fewer people want blood and a change to the system.
When last have they successfully prosecuted directors for actions. TIM was not only insolvent but in reality has been for a long time if anybody had bothered to roll the cash flows forward if you look at the administrators reports. Why isnt anybody doing anything.
I am a big boy I can take the pain but I am fast believing that notwithstanding the franking credits my investments are better placed in other jurisdictions where you go to jail for trading whilst under insolvent circumstances and you lose everything and they even go after your trusts etc. You end up as a criminal.
The senate investigation into MIS schemes will drag on and on and you will not resolve the basic tenant that the product is flawed when the fees are commission based and 10% of the invested funds are taken off the top.
Unless something changes as you put it the crooks get to keep what they have managed to make from the investor.
We get more rights when buying a toaster than we do when purchasing a financial instrument.
Activism needs a voice and ASX and ASIC need to stop preventing people from taking collective action under the threatening banner that you must then submit a holding statement etc etc. Shareholder activism is the only way shareholders can protect themselves as smnaller minorities.
These are just opinions please verify facts for yourself before taking any investment decisions. I have been wrong many times and am merely trying to start getting people to debate what I think is an important topic for the future.
I hold a position in TODHA not TIM so that is why I have no position.
TIM Price at posting:
4.4¢ Sentiment: None Disclosure: Not Held
