Macquarie Group Ltd says it has begun legal action against tollroad company BrisConnections, the company it helped create and float, to ensure its contractual obligations are fulfilled.
Macquarie Capital Advisers Ltd and Macquarie Bank Ltd have taken steps to initiate legal proceedings in the Supreme Court of Queensland to seek to ensure relevant parties fulfil their contractual obligations," MQG said in a statement to the ASX yesterday.
The legal action comes after Macquarie Capital Group yesterday acquired 31.43 million stapled units in BrisConnections representing an 8.06%.
Macquarie Bank said it had on Monday paid a further principal amount of $92.5 million to BrisConnections under a bridge facility previously agreed with the company.
BrisConnections was awarded a 45-year concession to design, construct, operate, maintain and finance the Airport Link tollroad in Brisbane.
Stapled securities in BrisConnections are partly paid securities. They are currently trading at a tenth of a cent and have generated enormous controversy.
There is at least one court case involving the company and an investor in it.
"Stapled securities in BrisConnections are partly paid securities. There are two further instalments of $1.00 each per stapled security payable by 29 April 2009 and 29 January 2010, respectively.
"The instalments are underwritten in accordance with an Underwriting Agreement dated 9 May 2008. Under the terms of the Underwriting Agreement, MCAL and Deutsche Bank AG, Sydney Branch each underwrite 50% of the instalments due by 29 April 2009 and 29 January 2010."
If the shares fail to rise and security holders default, then Macquarie and Deutsche Bank are on the hook for hundreds of millions of dollars. Depending on the level of default, it could be over $600 million.
The move by Macquarie Capital to take a stake in Brisconnections appears aimed at keeping control over the company whose future has been plunged into doubt by 26-year-old shareholder Nicholas Bolton, who wants to wind up the company.
Fertiliser group, Incitec Pivot Ltd. has established a $390 million loan facility with its core banks to fund its working capital requirements for 2009 and 2010.
In a statement to the ASX yesterday, the company also reaffirmed its 2009 guidance, stating it still expects net-income of approximately $450 million.
"As part of its capital management planning, IPL has also decided that in respect of any cash component of the next three dividends that may be paid, it will operate an underwritten Dividend Reinvestment Plan.
“These steps reflect prudent and proactive financial management during these times of unprecedented global uncertainty” said Managing Director & Chief Executive Officer, Mr Julian Segal.
IPL’s business performance continues to be robust. Mr Segal said “2009 forecast earnings remain in line with guidance provided to the market on 3 February 2009 with full year Net Profit After Tax before individually material items expected to be circa A$450 million.”
