Raw deal for Record Realty's investors
The Age
Friday March 19, 2010
INVESTORS in Record Realty, the once high-flying property offshoot of Allco Finance Group, have been given the bad news they long suspected: they will get nothing from its downfall.The sharemarket-listed trust that owned the ASX's headquarters in Sydney before it was seized by receivers on behalf of its bankers crumbled when administrators were appointed to its responsible entity, Record Funds Management, in August.Since then, corporate doctor PPB has been winding down its affairs and those at Record Realty which, at the height of the last equity and property market boom, was worth more than $2 billion.PPB sold the corporate shell of Record Funds Management €” its structure as a responsible entity €” in October as part of efforts to recover money for creditors, the largest being Allco Finance, which went into receivership 16 months ago.Record Realty's shareholders' stock was suspended from trading on the ASX in February last year and then delisted at the end of August."[We] have reasonable grounds to believe that there is no likelihood that unit holders will receive any distribution in the course of the administration," joint administrators Neil Singleton and Tony Sims said yesterday.Their only "benefit" now will be to claim a capital loss in their next tax return.
© 2010 The Age
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