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The BrisConnections debacle

Discussion in 'Shares' started by Simon Hampel, 19th Dec, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Many Brisconnections shareholders facing financial ruin - ABC News (Australian Broadcasting Corporation)

    7.30 Report - 20-Nov-2008

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    Fang He&squo;s $64.6m BrisConnections problem | Herald Sun

    BrisConnections in an unguarded moment

    Another BrisConnections bolt from the blue

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    http://www.asx.com.au/asxpdf/20081024/pdf/31d3r5y5chrmh3.pdf

    2nd installment liability arises for security holders on 21 April, 2009 ... 3rd installment liability arises on 21 January 2010

    This means that if you haven't been able to sell your holdings by these dates you will incur the liability.

    With securities currently trading at $0.001, you can invest $10,000 and purchase $10m securities. As of 21 April 2009, you will then be required to pay the 2nd installment @ $1 per security = $10m ... with a further $1 per security ($10m) liability kicking in in Jan 2010.

    This means for a $10,000 investment today, you can find yourself being pursued for $20m worth of debt.

     
    Last edited: 17th Sep, 2016
  2. 1300 GET A PLAN

    1300 GET A PLAN Active Member

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    Feng He was very very lucky. She got out in the nick of time.
     
  3. samaka

    samaka Well-Known Member

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    What happens if you default on the payment? I know it's under-written - but does that mean you still keep your shares?

    What would happen if you create a company, purchased a whole heap of shares under the company name, then just let the extra payments default?
     
    Last edited by a moderator: 4th Jan, 2009
  4. AsxBroker

    AsxBroker Well-Known Member

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    Hi Samaka,

    These are partly paid shares, indicative of the five letter stock code. Ordinary stock only have three letters. This is where people who think they know what they are doing get unstuck using execution only brokers and potentially very burnt. At least a full service broker would tell a client, in xx months you'll have to pay another $1 per share! The execution only brokers are providing an EXECUTION only service and hence don't give you additional notes. I never understand why people think that a $1 share is cheaper than a $10 share, price is mostly irrelevant until you sell. I always use P/Es as an indicator of if a share is cheap.

    Apparently it is fully underwritten so any shortfall will be coughed up by the underwriters. You've got to worry which genius thought that partly paid was a good idea...(probably the underwriters who got paid handsomely for it).

    If you don't pay any calls your shares can be cancelled (standard rules on partly paid stock).

    Cheers,

    Dan
     
  5. 1300 GET A PLAN

    1300 GET A PLAN Active Member

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    We will see what happens to Mr Bolton. He is in this situation.

    There was talk in the paper that they will sell up anyone who defaults. Including the family home. Sounds like these guys are playing hard ball.
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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  7. AsxBroker

    AsxBroker Well-Known Member

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    It sounds like Trevor is cleaning up with being on all those boards...
     
  8. shasta

    shasta Member

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  9. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Bang on the ASX door - it does have a role in instalment mess

    Elizabeth Knight | BrisConnect shareholders | ASX |

     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Sky News: Good news for BrisConnections investors

     
  11. Tropo

    Tropo Well-Known Member

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    Investors use fake names to escape payments
    17/04/2009

    Investors in BrisConnections, the company with a 45 year concession to build and operate the toll road to Brisbane airport, are transferring their stock in off market transactions to fake names in order to avoid paying instalments due on their units in April.
    Current regulations prevent the share registry operator from establishing if the new owner of the shares is a real person.
    One block of BrisConnections units is now held by Humphrey B. Bear.

    Source: The Age
     
  12. Nigel Ward

    Nigel Ward Team InvestEd

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    We'll he's been out of work for a while now (I think the fact he never wore pants was an issue)...so perhaps a couple of 0.1c units were all he could afford? :D
     
  13. AsxBroker

    AsxBroker Well-Known Member

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    Nigel,

    That's a crack-up :D
     
  14. cheeyeen

    cheeyeen Member

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    Last edited by a moderator: 19th Apr, 2009