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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: CBA bailing out debt plagued Firstfolio? yes indeed, let the games begin!

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Debt-plagued lender gets another reprieve

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by Calida Smylie | 08 Apr 2014  http://www.brokernews.com.au/news/breaking-news/debtplagued-lender-gets-another-reprieve-186256.aspx
 
Troubled non-bank lender Firstfolio has received yet another extension on the maturity date of its $30.3 million Commonwealth Bank senior debt facility.

CBA had given the company until 7 April to comply with its loan covenants but has extended the deadline to 7 July, according to an ASX announcement.

The company said it was considering alternative proposals from a number of parties.

“CBA’s extension of the maturity date of its senior debt facility will allow Firstfolio time to progress these alternative transaction opportunities,” company secretary Dustine Pang said.

Firstfolio reported a heavy loss of $300,000 for the six months to December, compared with a net profit of $1.8 million in the previous corresponding period.

Revenue was down 3% to $37.5 million and the value of the loan book fell by 2% to $18.5 billion.

Firstfolio has had trouble paying its $30.3 million senior debt facility with Commonwealth, and last year reported danger of loan covenant breach and so was recapitalising the business to inject new equity and reduce debt.

But Firstfolio took another blow in January, after IZN Investments Ace Management – the company which agreed to invest a minimum of $39.5m of equity capital in Firstfolio – missed the 20 January deadline and was unable to confirm when the funds would be transferred.

The company also has large outstanding debts to Westpac – which has extended the revolving period until the end of this week.  

Firstfolio’s interim CEO Mark Flack agreed to stand down in February from his position following the firm’s recapitalisation proposal issues. He was appointed to the position in July last year until completion of the company’s $50.2m recapitalisation proposal, following which he was to be appointed managing director of the company.

The board instead appointed Greg Pynt, an executive director of the company, to oversee Firtsfolio’s activities until the recapitalisation proposal proceeds or a permanent new CEO is appointed.
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  • doyla66
    doyla66 Tuesday, 08 April 2014

    It's definitely time to get out of the credit industry, if possible.
    Much safer watching the cannibalisation of companies and the bailout parties from the sideline.
    Borrowers are always going to be the ones who suffer.
    As the credit market changes the interest rates will go up, squeezing more borrowers out of their homes, farms and businesses.
    Loans will be called in with little warning, defaults enforced by jackbooted liquidators.
    It's already started. Get out of debt as soon as you can and almost any way that you can.
    No one is safe when the big boys in international banking start calling in favours from the US, UK and all the way back to Oz.
    Do you think if we all raided our piggy banks we might be able to buy a small island together?

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