Cymbis Finance Australia Limited (Receivers and Managers
Appointed) (“Cymbis”)
A.C.N. 109 245 141
On Wednesday 6 August 2008 the Trustee for the Debentureholders of Cymbis, Trust
Company Fiduciary Services Limited, appointed Greg Hall, together with Ian
England of PricewaterhouseCooopers, as Receiver and
Manager (together, Receivers), of Cymbis.
UPDATED
Impact of Market Developments at 14 October 2008
Debentureholders will be aware of the recent developments in the financial markets in particular
In addition we note that the recent announcement by the Australian Government boosts the support for first homebuyers, which is designed amongst other things to stimulate demand in the housing sector.
A key factor in the repayment of loans to Cymbis is the ability of borrowers to refinance their loans through other financial institutions.
These changes are therefore positive however at this stage there is still far too much uncertainty / volatility in the market to be certain that we will benefit from these recent developments.
We will keep you posted as circumstances change.FOR INVESTORS
A letter is being sent to each investor advising of
the process and how the receivership is likely to impact you.
The role of the Receivers in this case is to act as an
independent party to take control of the property of Cymbis
in order to ensure that the property is protected in the interests of all Debentureholders.
As a consequence of the receiver appointment, redemptions
of debentures are frozen. This is to ensure all Debentureholders
are treated in accordance with the terms of the debentures and the Trust Deed. Cymbis has two classes of debentures being Ordinary and
Enhanced debenture stock. In these circumstances principal and interest on
Enhanced debenture stock is paid in full prior to any payments being made to
Ordinary debenture stock holders.
When payments are made will be made to each class of
debenture on an equal basis regardless of when the debenture matures.
The key factor for influencing the level of recovery
for Debentureholders will be the recovery of the
loans. PricerwaterhouseCoopers will report once the
position has been fully reviewed however currently the expectation is that loan
recovery levels should be high.
The inability to meet debentureholder
repayments has largely been due to:
. The volume of debenture maturities that have not
been able to be funded from the cash inflow of Cymbis’
business being the repayment of loans to its customers; and
. Scheduled repayment of loans being
hampered by the inability of Cymbis’ borrowers to
refinance these loans as they have fallen due. This is a result of the
tight credit market.
Regular updates will be provided by
PricewaterhouseCoopers. In the meantime if you require further information or
have questions please use
one of the following options:
. Visit the website www.pwcrecovery.com by selecting ‘Cymbis Finance Australia Limited’ under ‘Businesses Under Management’ for regular updates and information in
relation to Cymbis.
. Call the Debentureholder
information line on 1800 185 209 (within
. Call the Receivers' hotline number on 1300 761 969
. Write to:
The Receiver and Manager
Cymbis Finance Australia Limited (Receivers and Managers
Appointed)
PricewaterhouseCoopers
GPO