Saturday, December 12, 2009

Ex Hedley pub fund still in the news

What used to be Tom Hedley's ASX listed HLG has now been renamed Redcape (RPL) but is still making some interesting news. The Sydney Morning Herald reported last Wednesday that "The chairman and chief executive of the debt-stricken pub property trust Redcape could pocket up to $8 million in bonuses between them as reward for the sale of the funds' hotels."

This report included apparent direct quotations from chairman Colin Henson that the banking syndicate involved in debt restructuring negotiations was ''keen for the management team to be properly remunerated''. Really?

The only other report I can find on this is a response which appeared in the Compost on Friday under the headline "Redcape denies bonuses claim". Redcape has relocated fropm Cairns to Melbourne to distance itself from Hedley and most of Tom's former holding is in the hands of the receivers. This report quoted Henson as saying:

"I don’t want to talk about it, but (the report) got it all wrong," he said.

"We’re ignoring it (the report). There is nothing like that on the table."

However the Compost then goes on to say that 'It is understood that management has been talking to banks about moving to a "performance-based" arrangement for senior executives.'

Most interesting however are references to comments from a 'Cairns financial analyst, who asked not to be named, (who) accused management of being "disingenuous" with shareholders' and went on to say:

"They are hiding behind a performance bonus that really just involves them selling properties at heavily written down values," he said. He said the board should "resign or be sacked over this arrangement".

How curious, and I cant help but wonder on who the analyst could be? Could they even be associated with the previous Cairns based management we wonder? KS is off out for Christmas drinks but will fill more in on this later along with some comments on the recent Redscape AGM ........

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