Are we even surprised?
Troubled developer Brisconnections has failed to sell any of its defaulted partly paid units put up for auction.
The manager of Brisbane's Airport Link toll road had offered more than 70 per cent of its issued capital at auction in Brisbane on Friday after the partly paid units were defaulted following a second instalment date.
BrisConnections offered stapled units at $3 each when it floated last year, with $1 payable upfront and two further $1 payments due nine months and 18 months after the allotment date.
The second instalment was due on April 29.
Under the trust's constitution, all securities in which the second instalment remains unpaid were defaulted.
About 278 million securities were offered for sale at the auction, just over 70 per cent of the 390 million securities issued.
The securities were offered at a reserve price of $1 each, in lots of 500 units or more.
As predicted, nobody wanted a bar of this thing. Why would you bid on something you can get for 0.0001? Why would you bid on something next to nix, that comes with a $1.00 liability per unit? The mind boggles, but there you go. More disturbing is this bit here:
Earlier this week a legal effort to wind up Brisconnections was dismissed in the Federal Court.
Securityholder Jim Byrnes was seeking to recover damages including the loss of value of BrisConnections units, which slumped to 0.1 cents by October last year.
Mr Byrne's case, alleging investors were misled in the project through statements and errors in the product disclosure statement, was dismissed on Tuesday.
That's more of a worry because it means the Federal Court doesn't see a problem with the projections offered in the prospectus, which are allegedly wish-casting guesstimates designed to sell, rather than works of proper forecasting.
I guess justice won't prevail and this thing gets built even though it's going to be a white elephant like the Sydney Cross-City Tunnel.
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