Executive Summary: September 07, 2009
By Scott Rochfort | smh.com.au | 07 September
For our next trick...double-act David Hamill and Jeff Kendrew.
CBD
Fell still has homing instinct
The founder of the fallen property group Rubicon and former Allco Finance director, Gordon Fell, has kept a low profile of late.
So it is heartening to see Gordie and his wife Philippa's other business concern, Hertford Properties, is continuing to chug along.
The business settled on a $6.5 million pad on Hastings Parade in North Bondi in May 2007.
This was the same year Gordie splashed out $28.75 million for his Point Piper waterfront home after he and David Coe pocketed $52 million in cash (and more in shares) from Allco Finance Group's takeover of Rubicon.
Hertford Properties initially had neighbourly opposition to its plans install a grease trap and exhaust fan at the Hastings Parade property, over concerns about the transfer of odours.
But all appears to have gone swimmingly since then. The Fells' other little plaything is a business called Hertford Developments, which changed its name from Rubicon Developments (Aust) Pty Ltd in 2006.
It appears to be independent of the sunken Rubicon Asset Management. Until November, Hertford shared the same offices as Rubicon.
BBI's magical trick
Babcock & Brown Infrastructure appears to have hired the services of some magicians, going by its latest announcement.
The coal terminal concern on Friday announced it had to repay $300 million of corporate debt by February, after noting its asset sale program might not be able to meet its debt maturities in the coming year. When the company reported a $977 million full-year loss two weeks ago, it noted it had to repay a $168.7 million corporate debt by February.
Magically, the company has been able to find an extra $131.3 million to be repaid by then. Only the most observant would been able to read this trick, which was never revealed in a press release or PowerPoint presentation until now. The $300 million figure was hidden away in a 339-page notice of meeting for BBI's New Zealand hybrid security holders last year.
It was then cited as a worst-case scenario debt deadline. Shazzam! It is unclear what routines BBI's chief executive, Jeff "Copperfield" Kendrew, and chairman and former Queensland Labor treasurer David "Abracadabra" Hamill are planning for the company's upcoming annual meeting. Hopefully, it will be some Houdini act for the company wanting to change its identity back to Prime Infrastructure.
The troubles at BBI have highlighted that it is not only former Liberal-National politicians (Andrew "MFS" Peacock, Rob "Asset Loans" Borbidge and John "Elderslie" Hewson) who chair market duds. At least Hamill took charge at BBI after things already started to turn pear-shaped.
All's well in Kentucky
And some good news from Louisville, Kentucky. The US engineering company Babcock Power Inc has announced it has not suffered any damage to its reputation from the troubles facing the unrelated Sydney outfit Babcock & Brown Power. "We have not encountered any fallout from the Babcock & Brown situation, nor have any of our customers associated us with BBP," the company's marketing director, Jim Sims, explained to CBD. The group supplies equipment to the power industry. Its motto: "The Babcock that is more than just a boiler company."
Saying it like it is
Macquarie Group's retail broking arm is rumoured to be planning to release a "plain speak" version of its research reports for retail investors. Translated by an in-house team of Macquarie "editors", it is being suggested the reports could decipher tricky technical words such as "downside" and "sell" and generally make for an easier read.
This column reckons some research reports could include: "Macquarie Airports – management internalisation is good"; "BrisConnections – great buy"; "Macquarie Group – debt is good" and "Macquarie Infrastructure – all good".
The dodgier the better
Nigeria now appears to be facing increased competition from other West African countries in the dodgy email sector.
This column received an email last week from a Miss Josiane Ngouane who has "gone through fasting and prayers asking God to lead [her] to a trustworthy person". Josiane needs some help withdrawing the $US3.5 million her father banked in the Ivory Coast before he was assassinated.
"I like honesty, trust, love, truth, caring and respect, I have all this [sic] qualities in me and I believe you have all this [sic] qualities too, that is why I decided to contact you for this transaction, I will like to ask you this question please can I trust you and how much percentage do you want [sic] me to offer you after we transfer this money into your account please I will like you to contact me as soon as possible so that we can know ourselves better."
A Miss Magdalene Barack from the Ivory Coast has requested someone help her withdraw $US5.7 million from the bank account of her father (who was poisoned). You just need to give her your bank account number.
Another lady from the Ivory Coast, a Mrs Zaafira Musa, noted how the reader "must be thinking how strange it is to receive a letter from me, since I am not accustomed to write you for the past years". Her late husband left her some money before he was assassinated by his bodyguard.
In the right job
The award for the Australasian banker with the most appropriate name: SBS Bank's (aka Southland Building Society) general manager for finance, Tim Loan.
Got a tip? email srochfort@smh.com.au
First published by Smh.com.au on September 07 2009
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