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NZ Permanent Trustees investigates Credit Sails

July 25, 2010

Dennis Church, the General Manager of Corporate Trustee Services has sent a letter out to Credit Sails Note Holders acknowledging that they are obtaining relevant information to ascertain whether or not any breaches of conduct have occured.  As a Credit Sails Note Holder, you should receive a copy of this.   Here are a few quotes that we will address in a letter to Mr Church this week:

Due to the materiality of losses suffered abnd concerns expressed by Noteholders, the Trustee considered it appropriate to seek additional information from the Issuer in relation to the offer documents,  The purpose of those enquiries has been to assess whether there has been a breach of the Trust Deed or offer documents.

The role of the Trustee is to protect the interests of the Noteholders tot the extent provided for in the Trust Deed and applicable laws.  In particular, the Trustee is required by the Securities Regulations 2009 to take all reasonable steps to ascertain whether or not any breach of the terms of the deed or of the terms of the offer of the Notes has occurred.

The following letter is dated, 22 July 2010:


Is there anything you would like Mr Church to investigate?  Please comment here:

2 Comments leave one →
  1. July 28, 2010 2:14 AM

    Questions I would like answered in respect of the New Zealand Permanent Trustee Limited letter to Credit Sails Noteholders on 22/7/10.

    1. What process did NZPT go through to decide on the suitability of the Trust Deed by which it then undertook to look after Noteholder interests?

    2. NZPT says it received ‘expert advice’ at the time of issue of the Notes. Who was the expert that NZPT relied on?

    3. When Credit Sails first departed from the investment portfolio indicated in the offer documents (the investment statement, 3/5/06) in ways that were not of benefit to Noteholder returns and yet significantly increased the risk to Noteholders, in particular by moving to dealing with Icelandic banks, what questioning and actions did NZPT undertake at the time to ensure that the interests of Noteholders were being looked after? The investment statement stated that the strategy was to invest through the US based DJ CDX US index and the Europe based iTraxx index. The pie chart provided of the iTraxx Europe index gave the per cent distribution by country/region and showed 12 countries, none of which was Iceland, even though two countries as low as 0.8% were shown.

    4. When approximately does NZPT anticipate it will be in a position to advise the outcome of its current enquiries?

    5. What actions to recover Noteholder savings are within NZPT powers should its assessment find that Noteholder interests had not been adequately protected? Or has that particular horse bolted?

    6. Who is checking on NZPT itself that it has not been negligent in its duties, that it has acted correctly and competently throughout, and that its final findings when announced are sound and credible?

  2. Anonymous Credit Sails Note Holder permalink
    August 17, 2010 11:51 PM

    24 July 2010

    Mr Dennis Church
    General Manager
    Corporate Trustee Services
    NZ Permanent Trustees Ltd

    Dear Mr Church,

    Re: Credit SaILS Notes

    Today I received a letter from you regarding your belated actions on this useless investment. I am a farmer. I have sheep which I shepherd between paddocks. I check the amount of food available to them and move them on occasions when I have good reason to do so. I close the gates behind me and check they are secure. I am a trustee of the Trust that owns my farm. I have lost no sheep due to lack of food or disease, or lack of security. I feel I have done my job well and am happy for the beneficiaries of my trust. If I had not done these things and my stock had died, or wandered off through an unclosed gate, and the Trust suffered a capital loss I would have been made to pay reparations and would have been sacked a long time ago for my ineptitude.

    I am sorry, but you are trying to cover your arse after the fact. Why were you not diligent at the time off this loss? Why did you not shut some gates when you had the opportunity? You have shut your eyes, and sat on your hands, while my investment stock wandered off through some gates that should not have been open. Now that the stock has gone you are running around, flapping your arms, huffing and puffing, as if you really did care all the time. This does not wash with me.

    I would like my investment returned in full. Failing that, I will have to consider legal action against your firm for its negligence.

    Yours sincerely,

    Anonymous Credit Sails Note Holder

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