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December 5, 2007 |
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ABSOLUTE CAPITAL: Large Investors May See Little Returns One of Absolute Capital Group Ltd.'s administrators, Tony McGrath, is optimistic the company will be able to find a buyer, Katherine Jimenez writes for The Australian. Mr. McGrath, however, also cautions that large investors are likely to see only a small return on the debts, the report says. The report explains that some 50 corporations, including Westpac Banking, are owed up to AU$5 million, and the 50% owner of Absolute -- ABN Amro -- has not voiced any interest in acquiring the rest. The company has fund assets of about AU$350 million, but had been affected by the deterioration of the U.S. sub-prime mortgages market, The Australian adds. The Troubled Company Reporter-Asia Pacific reported on Nov. 30, 2007, that Absolute Capital had to temporarily freeze redemptions in mid-2007 on its yield strategies fund product, due to the global credit crisis. The company used collateralized debt obligations for about half of its investments. The TCR-AP report also stated that administrators McGrath Nicol may attempt to divest the fund products to a new owner. About Absolute Capital Absolute Capital Group Limited -- http://www.absolutecapital.com/Home.htm -- is an Australian investment manager and holds an Australian Financial Services Licence (No. 245504). Absolute Capital Limited is a wholly- owned subsidiary of Absolute Capital Group Limited. The Absolute Capital Group is 50% owned by ABN AMRO Australia Limited, and 50 per cent owned by Absolute Capital Management Holdings Limited. The Troubled Company Reporter-Asia Pacific reported on Dec. 3, 2007, that Absolute Capital has been put into administration after a sharp decline in revenues in the wake of the U.S. subprime mortgage crisis. Absolute Capital's board of directors has appointed Tony McGrath and Joseph Hayes, of McGrathNicol. |
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