Lazy Bastards

2 Nov

So ICC are going out for consultation again.  Rather than alter the previous Statement Of Intent they have attached the old one to a ‘clarification document’.

At least they have provided some extra information this time –  Holdco Group Debt Facility Forecast by Quarter For Council. 

Don’t you love how it has ‘for council’ in the file name?  Created especially for them (and us)… – I am such a cynic.  A forecast from them is irrelevant to me given the following statement.

Sycamore said the company had already started spending the $13m loaned by the bank for the airport upgrade and if the decision was made to stick with the status quo after consultation then the company would have to pay that back somehow, which could include selling assets.

BTW I only read the article recently and am flabbergasted!


10 Responses to “Lazy Bastards”

  1. Philip T November 2, 2014 at 4:24 pm #

    Its unbelievable that anyone would think the detail included in that document is satisfactory for people to fully understand what the millions of dollars being asked for is about. The debt may be ours one day but they are treating people with distain. The whole document is full of words like might, may, could and similar words that mean nothing. Not a single reference to the expected benefits to those who are being used to stand behind the debt these people want to raise. In the real world this would never happen. If a board put such a shoddy document with such lack of detail in front of their shareholders they would be booted into last month.
    Read it and tell us one concrete point you could put your foot on apart from the fact they want the ability to raise debt.
    Shoddy is being nice.

    • Realist November 2, 2014 at 7:33 pm #

      Worse, they want the uncalled capital to secure borrowing they have already committed too, that in itself is an absolute joke.
      If they knew they had to raise security to get the funding, this matter should have come before council before ICHL committed to their funders.
      Commonly this is now called holding Councillors to ransom to pass resolutions to back already done deals. This whole matter should be reviewed by the OAG as it stinks to high heaven with ICC managing ICHL and doing deals that then go before council.

  2. Kylie November 2, 2014 at 10:43 pm #

    Someone want to clarify something for me? Who is ‘the company’ in the statement “Sycamore said the company had already started spending the $13m loaned by the bank for the airport upgrade”? Is it ICHL or IAL? I heard that it was said at a meeting that IAL needed more money….can someone update me please

    • Realist November 3, 2014 at 9:25 am #

      ICHL borrow and lend to the subs, so ICHL have been borrowing and lending to IAL and EIL.

      • Kylie November 3, 2014 at 11:43 am #

        I’m aware of that but do wonder which ‘company’ spent the airport money. Remember I have no faith in Holdco so choose not to assume he is referring to IAL as ‘the company’. Being as Sycamore is not IAL I find it strange to call it ‘the company’….maybe ‘the airport’ or ‘IAL’ but ‘the company’……….seems cautiously general.
        I don’t recall the airport loan requiring any fiddling around. I thought it was within the original debt level Holdco were approved for by Council policy (but I suppose it has been imposed by the bank)

  3. Realist November 3, 2014 at 12:11 pm #

    Both IAL and EIL have spent, ICHL have funded the spending so far, and yep they claim its a requirement of the bank.
    The new document is also amusing in saying that they also need a “Buffer” for the bank of around $20+M and then liken it to taking out a mortgage where the bank requires the extra buffer. That is speculative at best given a bank requires a buffer on a mortgage as the housing market is an “unknown” and is always in a state of flux, hence the requirement for additional equity in case an owner defaults on their mortgage the bank has a better chance of recouping its entire amount owed. In the case of uncalled capital you have no state of flux the shares have an exact value so I struggle to see why a buffer would be required as the bank can only call on the number of shares required to settle debt, they couldn’t call on $100M to settle $80M.

    The whole things a total shambles, poorly planned, and badly executed

  4. Realist November 3, 2014 at 12:17 pm #

    Almost forgot, open up that debt forecast by quarter and have a look at ICFL, then have a look at the minutes of the Extraordinary meeting of the 21st Oct.
    DJ stated during that meeting that ICFL had assets of about $22.498M and debt on that of about $12.4M and that as at that date debt was sitting at about 55% of assets.
    According to that debt forecast ICFL are sitting at $18.341M, about $6M out from what DJ stated on the 21st, which if correct that its assets are $22.498M and Debt $18.341M then on those numbers its debt is sitting at about 81.5% of assets.

    • Philip T November 3, 2014 at 3:24 pm #

      Leaves you wondering is anyone can read balance sheets or spread sheets doesn’t it. Is he somehow trying to include the dividend into the present debt

  5. Philip T November 3, 2014 at 3:28 pm #

    I also read that council has authorised the 13million airport spend so that is now irrelevant to the document. If the council has done that then the debt will be the ICC’s and not Holdco and there is no need for this to be included in the consultation.

    • Realist November 3, 2014 at 3:57 pm #

      Nope Council told Holdco to spend on the Airport (as shareholder) so authorized the spend a while ago, however at that time I don’t think they were told in order to borrow they would need to increase securities (something that you would have thought was a fairly basic thing to do prior to being told to spend)

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