Sharechat Logo

Tower questions adviser's role

By Christine Nikiel

Friday 31st January 2003

Text too small?
Tower Trust general manager Glenn Clark said yesterday he was concerned at Money Managers' 50% interest in the new lender to Auckland developer Andrew Krukziener for his Metropolis tower, where more than $25 million is still owed to bondholders.

Mr Krukziener picked up Structured Finance, a 50% subsidiary of Securities Registry (SFL) which is 50% owned by Money Managers founder Doug Somers-Edgar and business partners Russell Tills and Gerald Siddall.

As Mr Krukziener's new lender, SFL was assigned Mr Krukziener's ANZ Bank loans and securities and so preserved the rights of the first mortgagee to be paid back first, stopping Tower Trust from taking enforcement action against the development company, Pacific Properties (Metropolis).

Mr Krukziener can still draw down funds that rank ahead of bondholders.

Mr Clark said bondholders faced the risk of further funds being drawn down to fit out or further develop the remaining property without necessarily improving the property.

"We're concerned SFL is advancing funds to Mr Krukziener ahead of bondholders," he said.

Metropolis trustee Tower told bondholders this week their investments would be slashed in half.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports