RAT 0.00% 0.9¢ rubicon america trust

allcos stake in the rubicon trusts

  1. 6,716 Posts.
    Just had another look at the Allco announcement of Feb 25.

    According to that announcement, Allco held around 10% of each of the three trusts in another trust ( RST ) which, I think, they bought from fell and coe.

    This RST trust held around 40M shares in each of the three trusts, a holding which would have been worth around $120m six months ago.

    RST has/had a $70m margin loan against those shares.

    Those shares would now have a value around $15m MARGIN CALL !

    Allco sold 9M RJT units on 19 Feb. They would have got about 48c each or about $4.4M for those.

    ( No wonder there was so much ramping of RJT as being better than RAT or REU that week - rampers have been noted ).

    It still looks to me, this unlisted RST entity is broke, very comprehensively broke, expect the remainder of its holdings in the Rubicon trusts to come onto the market now, if they haven't already in the past few days.

    Several possibilities here. The margin lender bank may be determined to maximise its losses ( perversely ) by selling at the lowest possible price. Or it may not.

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