Structured Finance payments halt exposes First Step investors

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Money Managers’ First Step clients have seen their investments take another misstep with Structured Finance’s halt on repayments yesterday.

Financial Trust, which invested First Step funds as trustee for the First Step trusts, holds the vast majority of outstanding Structured Finance debenture stock.

The spokesman for First Step’s trustee Calibre, Edward Russell, confirms that about $30 million is owed to the funds.

The last First Step accounts – which predicted a nearly $100 million shortfall to investors – did not make any provisions for losses on the investment.

Financial Trust’s debenture holding came about as the result of a deal struck in 2007, giving the Trust $100 million debenture stock in lieu of repayment of a debt owed by Structured Finance.

Structured Finance’s latest prospectus states that the remaining debt to Financial Trust was extended three times and was due to mature on June 19 this year.

Structured Finance has a number of connections with Money Managers – its debentures were sold through the advisory chain.

Director Martin Reesby also runs another finance company, Fidelity, alongside New Zealand Funds Management directors and Money Managers shareholders Gerald Siddall and Russell Tills.
 


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7567 0.0000 0.00%
AUD 0.9753 0.0000 0.00%
EUR 0.6945 0.0000 0.00%
GBP 0.5084 0.0000 0.00%
HKD 5.8650 0.0000 0.00%
JPY 90.0730 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1198.2 -6.000 2015-03-27T00:
Oil Brent 56.4 2.710 2015-03-27T00:
Oil Nymex 48.9 -2.560 2015-03-27T00:
Silver Index 17.1 -0.071 2015-03-27T00:

Indices

Symbol Open High Last %
NZX 50 5833.2 5854.2 5833.2 0.36%
NASDAQ 4863.7 4899.3 4863.4 0.57%
DAX 11920.2 11954.1 11843.7 0.21%
DJI 17673.6 17729.1 17678.2 0.19%
FTSE 6895.3 6910.6 6895.3 -0.58%
HKSE 24541.4 24549.9 24497.1 -0.04%
NI225 19374.7 19590.0 19471.1 -0.95%