ASIC moves on still more McGrathmageddon allegations

Via Domainfax:

The ASX is reviewing claims made by real estate giant McGrath disputing speculation its Rich Lister founder John McGrath has a $100 million margin-lending facility attached to his shares in the publicly listed company

Details of the loan emerged on Friday after the company told the stockmarket on Thursday night that the multimillionaire had never used his shares as collateral for a loan.

Documents lodged with the corporate regulator indicate Mr McGrath has a maximum liability of $100 million through his private entity, Fondorru Pty Ltd, but they do not specify how much the loan was for, nor do they mention what assets were available at the time to secure the loan. Fondorru holds a 14.8 per cent stake in McGrath.

The documents show Mr McGrath took out a margin loan with St George in 2011. McGrath Real Estate listed on the ASX as an entity in December 2015.

Shares in the beleaguered firm held up last week:

Then again, with the real estate slide only just beginning, the bottom is not likely to be in.

The other falling titan of realty is also taking more heat, via The Australian:

Fairfax Media has confirmed for the first time that Antony Catalano, former chief executive of its real estate listings business Domain, resigned after being called in about a human resources complaint alleging the company’s culture resembled a “boys’ club”.

With no replacement lined up, Domain chairman Nick Falloon’s explanation for Mr Cata­lano’s sudden exit in January — “he had decided to put his family first” — raised more questions than it answered.

But, as the company prepares to report half-year results this month, Fairfax said in a statement sent to The Australian that Mr Falloon received “formal allegations” about Domain in December.

Comments

  1. Punting on the shares with borrowed money just proves that he is committed. Denying that he has a massive debt is the Australian way.

    Someone give this bloke an AM. Better still – an AO!

  2. Margin lending on top of a massive gambling debt. Will he call one of those gambling helplines about his problem? Nah

  3. We are starting to get a little more detail as to who was in that crowd doing the pissing into Fair facts tent. Looks like having a beer with the Cat is Mark O’Brien, and could that be Stuart Littlemore QC. as well. News from the front line, Margin Call (News Corp)says the next communication from the Cat to Fair facts will be stamped with a court seal.

  4. just shows how rotten both the real estate and stock market is, the complete failure of government regulation and policy.

    • the markets have always been corrupt, it is just that in the past the sheep never had this much money to be fleeced.
      someone once said to never get between turnbull and a pile of money, and they were serious
      so now big Clive has a court order on turnball for his paradise papers connections
      and a defamation case against the mayor of TVL
      Interesting times the ole survival of the fittest.