Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| Sunday, May 17, 03:15:08pm | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4, 5, 6, 7, 8, 9, 10 ] |
| Subject: Melbourne Age May 1stWeakened ERG gets its ticket to ride againSeattle projectBy Ian Porter | |
|
Author: Picture: TONY FEDER  |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: Wednesday, April 30, 12:45:01pm In reply to: Newspapers reporting result--March 7 2003 SMH 's message, "Noteholders have tickets to ride" on Thursday, March 06, 08:38:56am http://www.theage.com.au/articles/2003/04/30/1051381998264.html ----------------------------------------------------------- Weakened ERG gets its ticket to ride again May 1 2003 By Ian Porter ----------------------------------------------------------- ERG chairman Sandy Murdoch, right, with chief executive Peter Fogarty at yesterday's meeting. ----------------------------------------------------------- Shareholders in the fare collection and smartcard group ERG yesterday overwhelmingly approved a major dilution of their stake by supporting a plan to convert loan notes into ordinary shares. ----------------------------------------------------------- The shareholders' support exceeded 95 per cent of the votes cast for all parts of the recapitalisation plan. ----------------------------------------------------------- Before the vote, chairman Sandy Murdoch warned that the company's weak balance sheet would limit its ability to capitalise on its technological advantage over its fare collection rivals. ----------------------------------------------------------- He said the balance sheet was "overwhelmed" by the $250 million convertible note liability and the earnings depressed by the associated $18.8 million interest bill. ----------------------------------------------------------- The weak balance sheet was also a significant hurdle for the company at a time when customers were increasingly demanding the security of performance bonds, "deposits" they could keep if fare collection systems were not delivered on time. ----------------------------------------------------------- "Shareholders currently own 100 per cent of a company with a weak balance sheet and $29 million in net assets at December 31, 2002. ----------------------------------------------------------- "If approved, the restructure will see you own approximately 35 per cent of a company with net assets . . . of approximately $311 million," Mr Murdoch told the meeting. ----------------------------------------------------------- "ERG has begun to pile on the runs in terms of new contract wins around the globe and we have convincingly won the debate about who has the best automated ticketing technology in the world." ----------------------------------------------------------- However, he said, the balance sheet needed to be transformed so it could properly underpin the company's growth path. ----------------------------------------------------------- After the meeting, he said that, while shareholders had been diluted, the asset backing of their shares had risen "dramatically". ----------------------------------------------------------- Shareholders also approved the proposed 10-into-1 consolidation of shares and the terms for a possible $50 million issue of preference shares. ----------------------------------------------------------- A decision on whether to make the rights issue will be made later. ----------------------------------------------------------- Mr Murdoch said the contracts for the Seattle project had been signed in the US on Tuesday night after all seven transit operators approved the ERG proposal. ----------------------------------------------------------- [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| ERG shareholders endorse restructure West Australian April 30th | (Caltex--lol) | Wednesday, April 30, 01:07:56pm |
| ERG/WA/30/4/03Perth&Yorkshire learn/won- by July.ERG shareholders endorse restructure | by July | Wednesday, April 30, 01:28:08pm |