Angas Securities has until June to repay investors owed close to $100 million
ANGAS Securities has outlined to the Federal Court the company’s plans should it fail to meet a looming deadline to repay investors owed close to $100 million.
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ANGAS Securities has outlined to the Federal Court the company’s plans should it fail to meet a looming deadline to repay investors owed close to $100 million.
More than three years after commencing a winding down process for its $220 million debenture fund, the Adelaide company has until June to repay investors in full.
Angas says investors have recouped close to $122 million in principal repayments since 2015, leaving approximately $98 million still owing.
Investors have already approved two extensions to the “run-off” agreement deadline.
Since the most recent approval in August last year, Angas has repaid a further $32.3 million.
With the June deadline looming, a Loans Realisation Committee (LRC) - tasked with overseeing the run-off agreement - recently requested Angas to provide a proposal detailing the company’s intentions should it be unable make full repayment by June.
The LRC comprises representatives of Angas and trustee The Trust Company, and an independent member appointed by the Federal Court.
In a recent update to investors, Angas executive chairman Andrew Luckhurst-Smith said “alternative proposals” were being considered, and that the company had presented these to the LRC and The Trust Company.
“Since then, Angas has formally reported to the Federal Court on the alternative proposals under consideration,” he told investors.
“Orders were made by the Honourable Justice Beach on 8 November 2018 setting out a structure by which the parties should conduct their deliberations in good faith.
“Significantly, these orders were made with the consent of the trustee.”
Mr Luckurst-Smith told The Advertiser legal constraints prevented him from detailing the proposals, but that Angas remained “fully committed to ensuring the best possible return for its debenture holders”.
“However we acknowledge that realising liquidity from our residual loan assets may take longer than expected,” he said.
“As such, we are working closely with all stakeholders to consider the best options moving forward in the event that these residual assets cannot be liquidated by the expiration of the run-off.
“Any alternatives would need to be approved by the court, and at this stage we aren’t able to provide a timeline as to when this will occur.”
In its latest quarterly update, Angas said it was progressing the sale of a number of properties across NSW and Western Australia, and had received an offer for the Crown Marina site at North Haven, comprising 46 leased and vacant marina berths and approval for a further 28 berths and associated infrastructure.
A spokeswoman for The Trust Company, which has previously urged investors to place the debenture fund into administration, said it would consider “any proposal and information which Angas puts forward that is in the debenture holders’ best interests”.
Angas has long argued that investors would receive far less should the debenture fund be placed in administration.