Aussie infrastructure firm BrisConnetcions unit holders to vote on winding-up
14 Apr 2009
The stage is set for a winding up vote on BrisConnections with a court having allowed a vote of unit holders on winding up the troubled company scheduled for Tuesday.
Queensland Supreme Court judge Peter Dutney dismissed a bid by Macquarie Group to stop unit holders from voting on a winding up proposal.
BrisConnetcions, the company which developed Brisbane's A$3.4-billion Airport Link Tunnel had been listed last year as a partially-paid stock. Investors had made an initial payment of A$1 with an additional A$2 owed in future instalments.
The stock, however came for heavy hammering tumbling to less than once cent in the global credit crunch with institutions withdrawing support.
The vote has been sought by BrisConnections' largest shareholder, Nicholas Bolton through his company Australian Style Investments. It will allow unit holders to vote on a winding-up of the company which will relieve them of the deferred two A$1a-unit calls on their investment.
Analysts, however point out that co-underwriters Macquarie Group and Deutsch Bank are not in favor of winding-up and the motion is unlikely to get the required 75-per cent shareholder support.
They say a management change motion has a better chance of succeeding. A supplementary motion would allow management change on a 51-per cent vote, though its impact would be less certain they point out.
Macquaire Group and Deutsche Bank are also in talks on a proposal which would exempt unit holders from the two A$1 calls provided they were to vote against the wind-up.
Meanwhile BrisConnections executives reportedly spent much of the weekend preparing for the crucial meeting of unit holders. Chairman Trevor Rowe put the finishing touches to his presentation to unit holders.
The company has made arrangements for about 500 unit holders but expects less than 250 to turn up. About 72 per cent of the 390 million BrisConnections units on issue are held by retail investors.
Australian Style needs 75 per cent vote to succeed with its resolution for winding of the company's trusts with its other extraordinary resolutions needing a 50 per cent support.