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| Monday, May 18, 07:06:51am | [ 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: ERG shareholders back recapitalisation/P Fog-sit down and discuss."My intention is not to be here forever, so some time in the next 2years, the term of my contract, I'll probably leave." | |
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Author: Mandy Bryan with AAP AFR May 1st/03 |
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Date Posted: Wednesday, April 30, 01:13:13pm 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://afr.com/it/2003/05/01/FFX6X2E74FD.html ------------------------------------------------------------ ERG shareholders back recapitalisation May 1 ------------------------------------------------------------ Mandy Bryan with AAP ------------------------------------------------------------ Shareholders of troubled transit ticketing company ERG yesterday backed a recapitalisation of the company's balance sheet in a deal that sets the scene for a shake-up at the top. ------------------------------------------------------------ Although it diluted their joint holding to about one-third, shareholders overwhelmingly agreed to roll $250 million in convertible notes into ordinary shares because the move was considered crucial to the future of the company. ------------------------------------------------------------ "You've given us nowhere to run today," said one irate shareholder, while another said the convertible noteholders effectively had the directors "by the balls". ------------------------------------------------------------ Their "yes" vote delivered a controlling 27 per cent stake into the hands of the major noteholder, Sydney investment manager Duncan Saville's Ingot Capital Management, and paves the way for major boardroom changes when he takes his seat in the coming weeks. ------------------------------------------------------------ A review of ERG's board and its management will follow his appointment to the board, though Mr Saville has already called for a slimmed-down board of five. ------------------------------------------------------------ This means three of ERG's long-serving directors are on the chopping block in light of this week's appointment this week of Tony Shepherd, deputy chairman of Transfield Services. ------------------------------------------------------------ The move may not be unwelcome to shareholders given the poor performance in recent years of the loss-making company. ------------------------------------------------------------ Eyes will also be on Peter Fogarty, ERG chief of 17 years who has presided over the company's meteoric rise and fall, and whose future has been the subject of much speculation in recent months. He said yesterday he planned to discuss with the board the best role for him in the company. ------------------------------------------------------------ "We are all sensible human beings and we are not going to have a fight about it," he said. "Any sensible management changes I think are appropriate and they think are appropriate we will sit down and discuss. ------------------------------------------------------------ "My intention is not to be here forever, so some time in the next 2years, the term of my contract, I'll probably leave." ------------------------------------------------------------ Shareholder approval of the recapitalisation, which followed agreement by the noteholders last month, was considered inevitable given ERG's huge liability in convertible notes and annual interest payments. ------------------------------------------------------------ ERG had warned shareholders that a failure of the recapitalisation, which was to shed a significant proportion of debt from its balance sheet, would have inhibited its ability to bid for future projects. ------------------------------------------------------------ Shareholders yesterday approved a possible rights issue of up to $50million in preference shares, under which Mr Saville could take a 41 per cent stake in the company. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| I think he will stayP Fogarty will get a different role within the company. (NT) | analysis/opinion | Wednesday, April 30, 01:32:26pm |