Is V8 Supercar Australia (VESA) safe from the ALLCO Issues??

[mmciau]

I suppose GTRMagic may have the best insight on the matter!!

As the heading inquires!

Is the V8 Supercar Australia Legal Entity safe or remote enough from any of the current issues associated with ALLCO?

I ask because I understand there there may be associations through various other legal entities/directorships?


Mike

[stmookeyj033]

Have to ask, what is ALLCO?

[mmciau]

Originally Posted by stmookeyj033

Have to ask, what is ALLCO?

They were in the mix to buy Qantas 18 months ago!!!!

From:

http://business.theage.com.au/busine...1107-5k6s.html

THE collapse of Allco Finance Group into receivership is in danger of creating a domino effect among its sharemarket-listed real estate and investment offshoots, with a flurry of statements from them warning of likely defaults on their debt repayment deals.
Allco's demise has already taken with it the group's subsidiary, which owns the management company that runs its Rubicon property trusts, Rubicon America, Rubicon Europe and Rubicon Japan.
The directors of Rubicon Holdings Australia called in receivers acting for National Australia Bank after deciding on Wednesday that the business was no longer a going concern. That came a day after Allco appointed administrators, having collapsed under the weight of $1 billion of debt.
The Rubicon "triplets" sought to reassure their investors that RHA's failure had no immediate effect on Rubicon Asset Management (RAM), which runs them. RAM, though, remains an asset of its parent entity that is now in the hands of a receiver looking to recover any debts on NAB's behalf.
RAM and the trusts are still viable, the ASX was told, although their shares have been suspended after the respective stocks went into a trading halt immediately in the wake of Allco's receivership.
The suspensions — with Rubicon Europe at 0.5¢, Rubicon America at 2¢ and Rubicon Japan at 1.2¢ — will continue until next Friday, when all three expect to update investors about their financial and operational positions.
However, the Rubicon trusts — whose sharemarket values have been wiped out because of the global credit crunch on their property interests — underlined the severity of the effect of Allco's wipe-out on their own debt problems.
And both Rubicon Europe and America warned that the handover of Allco to receivers could trigger "change of control" conditions in their lending agreements and so lead to them to defaulting on hundreds of millions of dollars of loans.
Furthermore, Rubicon Europe stated that this almost definitely would be the case under complex debt reduction deals with NAB and investment bank Credit Suisse.
The European trust, like its siblings, has been trying to sell real estate assets to pay back both lenders, but sales have dried up in recent weeks.
All three businesses are engaged in urgent talks with Allco's receiver Ferrier Hodgson about their management agreements and the employment status of the group's staff.
It is expected that receivers will soon start to cut staff to reduce costs, although key executives could be re-employed directly by the trusts following the severing of the management deals.
The same situation faces another Allco-related ASX fund, Record Realty. Record's securities were suspended at 1¢ for a further week yesterday as it also sought information from the receivers about the future management of its business. Record was directly run by Allco.
Allco Equity Partners, the listed private equity investment company in which Allco Finance has a 36% stake, insisted yesterday that its move to terminate its management deal with the group was valid.

[cavvy]

Mr Coe & Allco.
Mr Coe & SEL.
SEL & VESA.

I'd back James Erskine to be sure SEL is not involved in the Allco problems, & that appears to be the link to VESA.

[GTRMagic]

The press are saying lots of not-so-nice things about Mr Coe... the biggest issue seems to be the belief that there may have been some insolvent trading going on... which, if proven, may restrict capacity to retain other directorships.

While this is not likely to impact the financials of S&EL and/or VESA and its associated entities, losing a director at the top of S&EL may be a distraction.. and have an impact when talking to governments, major companies and other stakeholders looking for events, sponsorship, joint venture partners etc,

Will be interesting to see how it washes out

[GTRMagic]

Interesting

[mmciau]

It would get very interesting if ever a party became 'disqualified' as a Director under ASIC or Liquidation rules


Mike

[GTRMagic]

SMH Article Here

Originally Posted by The Article

David Coe ALLCO FINANCE GROUP

David Coe may never scale the Everest-like heights of the corporate world again after the earth-shattering demise of his Allco Finance Group. But that doesn’t mean that life hasn’t been kind to him in the past couple of years.

While some of the trappings of his previous high-profile career have been lost or given up as a consequence – such as the chairmanship of Sydney’s Museum of Contemporary Art in 2008 – Coe has been quietly beavering away on his other business interests, both old and new.

Now ensconced back in the exclusive Sydney suburb of Vaucluse after a spell in London, the 55-year-old has been helping to build up Sports and Entertainment, the sports management, retail licensing and marketing company of which he is chairman and owns 40 per cent.

Sports and Entertainment is the corporate face behind the V8 Supercars franchise, whose major event – the Bathurst 1000 – has been joined by the race around Sydney Olympic Park funded by the NSW government.
The company also represents sport identities such as Shane Warne, Matt Giteau, the Nine Network’s cricket commentator, Mark Nicholas, and the doyen of TV interviewers, Sir Michael Parkinson.

But it is not all hard work for Coe. If he needs to get away from the CBD, where he was once a regular face, there’s always the company-owned exclusive Mount Broughton golf course and country club at Sutton Forest in the Southern Highlands.

Unlike some of his former colleagues, Coe has kept a foot in the listed world by hanging on to his $80,000-a-year directorship of RHG, the former owner of RAMS Home Loans which collapsed spectacularly in 2007.
His old colleague and partner John Kinghorn, who continues as chairman of RHG, easily fought off a challenge by investors last year to have Coe thrown off the board, saying the former Allco chief executive had made ‘‘an invaluable contribution to the company over these extremely challenging times’’.

Meanwhile, Coe is believed to be dabbling in several of his old interests on an ad-hoc basis as a consultant to Minerva Capital Advisors, a boutique financial advisory firm founded by Allco’s former head of funds management, Neil Brown, which operates out of Sydney, New York and London.

But a return to a more public role may have to wait until the various inquiries into Allco’s failure by its receivers, liquidators and the Australian Securities and Investments Commission are completed – one of which involved Coe in a rare explanation in the NSW Supreme Court earlier this year of the events leading up to its collapse.