Intueri Education IPO

[carrom74]

Quantum and OCA are good business models but unfortunately they put money first, play with the rules, enrol not qualified student, and provide low quality education. I think the remaining NSIA, NZIS, Academy NZ etc. are real business and connects to industry well.

IQE used to have 3 parts of business (intueri, quantum, and OCA). Now only intueri part is left, but bear the debt, value loss from the other 2 parts.

PTE is a good industry and empowers people with real skills quickly. It has a lot of potential but I think IQE missed targetted students a lot.

1. There are so many male immigrants in their 20s, 30s, 40s. Normally their wives are house-wife or with low skills. After kids grows up to 3 years old, they are keen to study short term real skill courses for a job, not to study in university for 3 or more years. IQE should target them and provide courses like cooking, pharmacy, hair cutting, beauty, retail, etc. If labour is elected with free tertiary education. This is a huge opportunity.

2. NZ economy grows a lot because of Asian or Chinese factors. Think about a2 milk, Auckland airport, trilogy, comvita, property related shares, Asian or Chinese play a big part in it. IQE can take part too. There are many PTEs in China, same job training but low pay in China. Find big training PTEs in China, connect to them and give courses to their students who are already trained in China. Just some more soft skills training, language training, and skills adjustment training to make them suitable for NZ job market. Get 1000 students a year is not too difficult.

If IQE can get through adverse factors, I will try to talk with the CEO and see if these are possible.

Please try to talk to Rod and share your thoughts...

Just to add,most of the schools under IQE has a CAT 1 rating and this is not an easy achievement bearing in mind Quantum and Dive school let downs.

Also i am surprised how still OCA's CEO has a job.He should have been out long back when ASQA audits failed.

I still feel TEC and NZQA have some faith in them but unfortunately not the shareholders...3 cents is just ridiculous.

[Brain]

Heres a link which may be of interest

https://www.racing.com/horses/intueri

[glenmoretrader]

https://www.nzx.com/companies/IQE/announcements/296300

IQE is exiting Australia, and looking to divest its operations

[Jas001]

https://www.nzx.com/companies/IQE/announcements/296300

IQE is exiting Australia, and looking to divest its operations
I personally think IQE should suit previous vendor for Australia business to cover the losses. It seems obvious that to get 5 million incentive, the previous vendor tried to enroll as many students as possible by loosing enrolment criteria etc. As previous vendor enrolled students not meet ASQA standard, this is not acceptable behaviour and the purchase is invalid.

[levin123]

I personally think IQE should suit previous vendor for Australia business to cover the losses. It seems obvious that to get 5 million incentive, the previous vendor tried to enroll as many students as possible by loosing enrolment criteria etc. As previous vendor enrolled students not meet ASQA standard, this is not acceptable behaviour and the purchase is invalid.

Perhaps, but I don't agree with you. The SPA will have had all the usual warrants.


Caveat Emptor applies in the business world too.. A failure at DD is the Purchasor and their advisors' fault

[whatsup]

2 mil traded just on the close at .015 , falling knife today .005 next week ?

[couta1]

2 mil traded just on the close at .015 , falling knife today .005 next week ? I've assigned my holding to the write off drawer, fortunately even though I bought mine at $2.50 it was my smallest holding by a country mile, I just accept it as a part of the game we play. Will need a miracle of Biblical proportions to ever get back to its former heights.

[Master98]

I've assigned my holding to the write off drawer, fortunately even though I bought mine at $2.50 it was my smallest holding by a country mile, I just accept it as a part of the game we play. Will need a miracle of Biblical proportions to ever get back to its former heights.
Dear couta, even though you just have the smallest holding, but you keep holding it from $2.5 down to $0.015, your patience just great, good luck to you mate.

[percy]

I've assigned my holding to the write off drawer, fortunately even though I bought mine at $2.50 it was my smallest holding by a country mile, I just accept it as a part of the game we play. Will need a miracle of Biblical proportions to ever get back to its former heights.

Reading your posts, I often I don't know whether to laugh or cry.?

[Snow Leopard]

I am amazed that the bank has not pulled the plug and in many ways I wish it would as I keep being tempted to try and buy into this just to be able to file a SSH.

Currently such an act of folly would be about $75,000 for a 5% stake, but I am trying to hold out until I can be the majority shareholder for a lesser amount.


Best Wishes
Paper Tiger

Disc: Don't try this at home.

[percy]

Tiger Tiger burning bright in the forest of the night.
You will get burnt.

[couta1]

Reading your posts, I often I don't know whether to laugh or cry.? Yes I understand your dilemma.:confused::(:)

[Beagle]

I feel very sorry for shareholders. Someone needs to be held accountable for this substantial destruction of shareholder capital. Who ?

[huxley]

I remember a while back, I was waiting to get a hair cut and the guy ahead of me was chatting to the hairdresser about his investment in this company. He'd purchased either a $50k position or 50k shares, I forget which, and sounded pretty please with himself ... I can't help but wonder if he got out or held on till the bitter end.. :|

[winner69]

I feel very sorry for shareholders. Someone needs to be held accountable for this substantial destruction of shareholder capital. Who ?

Probably no one - shareholders knew the risks and took it

The promoters dressed the dodgy dog up wonderfully well and the shiny prospectus promised prospective punters that gold would flow their way if they 'invested'. I thought it was doomed from day one.

Possibly never as good as made out and then the industry sort of self imploding (to some extent their own actions) didn't help

Betcha many have done very well ot of this fiasco but many (including banks) regret they even heard of the outfit and put their dosh in.

Buyer beware and all that - take a punt and sometimes you win and sometimes ou lose - that's the nature of the game.

[Brain]

I am amazed that the bank has not pulled the plug and in many ways I wish it would as I keep being tempted to try and buy into this just to be able to file a SSH.

Currently such an act of folly would be about $75,000 for a 5% stake, but I am trying to hold out until I can be the majority shareholder for a lesser amount.


Best Wishes
Paper Tiger

Disc: Don't try this at home.

I would have thought that it is in the banks best interest to try and get this company to trade out of its difficulties. Intueri have very little assets and certainly not enough to cover the $70m debt.
As long as Intueri pay the interest bill the bank will be slow to move but if they haven't got their act together and start running at a loss then the bank will jump on them.

It all depends on whether or not the NZ business standing alone can be profitable without the Australian business. Intueri have said that they have achieved considerable cost savings by restructuring the NZ business so maybe it can stand alone.

Probably need to wait to the results later this month to get an idea.

Restructuring $70m of debt for a company with a market value of $1.5m seems to me to be challenging.

What part will Arowana with a 25%. shareholding play in this?

[Balance]

I would have thought that it is in the banks best interest to try and get this company to trade out of its difficulties. Intueri have very little assets and certainly not enough to cover the $70m debt.
As long as Intueri pay the interest bill the bank will be slow to move but if they haven't got their act together and start running at a loss then the bank will jump on them.

It all depends on whether or not the NZ business standing alone can be profitable without the Australian business. Intueri have said that they have achieved considerable cost savings by restructuring the NZ business so maybe it can stand alone.

Probably need to wait to the results later this month to get an idea.

Restructuring $70m of debt for a company with a market value of $1.5m seems to me to be challenging.

What part will Arowana with a 25%. shareholding play in this?

Arowana took a huge capital gain off the table when IQE was IPOed?

There was talk they might reprivatize IQE when the company hit the skids but they probably saw the mess and toasted themselves for their genius.

[Brain]

Yeah I realise they made quite a bit of dosh with the IPO but I don't understand why they retained their 25% stake. Why didn't they sell it when they realised IQE were in trouble. They had a man on the board and he would have had a very good understanding about the competence of the board and management.

[h2so4]

Insider trading may have been the incentive not to sell. Reputation lost in an instant.Lol!! Everything is a judgement call unless it jumps out at you. I suspect they were practicing assiduity until it was too late.

assiduity...sit on a.. until you do it.

[Beagle]

I am amazed that the bank has not pulled the plug and in many ways I wish it would as I keep being tempted to try and buy into this just to be able to file a SSH.

Currently such an act of folly would be about $75,000 for a 5% stake, but I am trying to hold out until I can be the majority shareholder for a lesser amount.


Best Wishes
Paper Tiger

Disc: Don't try this at home.

Rather than put a paw print on this mutt of a company, you could leave more than a few paw prints on a wide variety of different beautiful beaches around the world for $75,000 :)

Its all about loss mitigation for the bank now, just a question of how much they lose.

[Brain]

From what I can see Arowana didn't sell any shares at all. Their 25% stake was worth in excess of $75m at one stage. I am sure if Arowana could see that that this company was going to be worthless they would have started selling long ago. Selling a million shares from time to time would be rebalancing the portfolio and not insider trading I would think. To me Intueri is a very interesting case from all points of view - shareholder behaviour , board and management behaviour and in particular Arowana. Commentary on this thread indicates Intueri was a basket case right from the start but to me that is not consistent with Arowanas post IPO behaviour.
Would Arowana allow their stake to be reduced to $375,000 for fear of insider trading. Are they incompetent? I would be interested in some more views on this.

[winner69]

At least Arowana were 'dismayed'

From last Annual

Speaking of challenges, we have been dismayed and very disappointed at what has transpired with Intueri Education (“Intueri”). AWN’s escrow period expired on 31 December 2015 but we never had any intention to sell our residual 24.9% stake. In an ideal world, Intueri would be a $3 stock not $0.30, be paying increasing dividends to AWN and be expanding its vocational footprint across both students and courses. Unlike with VivoPower, AWN’s engagement with Intueri post its IPO has been very limited and more than arm’s length, as we have respected the strict legal position that the Intueri board had been advised to take with regard to its engagement with AWN.

[h2so4]

Brilliant. Thank you w69.

[Brain]

Good comments winner and Ogg. So I think Ogg is saying that at the time of floating of Intueri it is unlikely that investors were able to predict the probable failure of Intueri? Winner would probably argue that it was destined to fail.

I was not aware of the escrow period ending when the share was 30 cents. But then again their stake was still worth $7.5 m at this point. Still worth offloading a few and there would still be a considerable tax loss (not that a tax loss is a good thing) and It is always best to limit losses if possible. Did Arowana act like a possum caught in a headlight? Theses guys are supposed to be professionals. To say that they didn't intend to sell their shares and not change their opinion with changing circumstances is beyond me.

[h2so4]

When it comes to investment we are all dumb. It's hindsight that keeps our intelligence intact.

[Brain]

When it comes to investment we are all dumb. It's hindsight that keeps our intelligence intact.

I agree with that Sulfuric it certainly applies to me.

[carrom74]

Pulled from Arowana's Annual report and one of its "strategic priorities is...

Rebuild vocational education division and assist in turning around Intueri (where possible)"

Oops... that's not working eh?

[whatsup]

Anybody here plan to buy tomorrow?

Not with all of that DEBT !!

[whatsup]

.01 AND falling, is the end in sight ?

[carrom74]

.01 AND falling, is the end in sight ?

Soon to be worthless...IQE is having a painful end unlike WYN which had a
"ONE BIG CHOP"

[Brain]

Yes the market is taking a very negative view. However somebody is buying at 1c . Clearly they think it is worth a punt or is it PT working his way to file an SSH.

[couta1]

Soon to be worthless...IQE is having a painful end unlike WYN which had a
"ONE BIG CHOP" Tossing up whether to bail out, I'm only going to get my brokerage back so basically a total loss, too hard to say if and how long this dog will keep operating, and when the bank will pull the pin.

[winner69]

Tossing up whether to bail out, I'm only going to get my brokerage back so basically a total loss, too hard to say if and how long this dog will keep operating, and when the bank will pull the pin.

Don't sell couts

You've already written them as a loss so ......

.....just pretend you bought heaps at 1 cent


And then when thry get back to 10 cents you got a 'ten bagger'

[Brain]

Tossing up whether to bail out, I'm only going to get my brokerage back so basically a total loss, too hard to say if and how long this dog will keep operating, and when the bank will pull the pin.


I am going to wait till they report later this month before making a decision. You never know this may be a case of market capitulation and the reality may not be as bad. Keep the faith Couta :)

[Beagle]

The last of the life boats leaving.

https://www.youtube.com/watch?v=r4LyoUGxVd8 The directors are currently rearranging the deck chairs one last time for those poor unfortunate souls who missed the last life boat.

[couta1]

Don't sell couts

You've already written them as a loss so ......

.....just pretend you bought heaps at 1 cent


And then when thry get back to 10 cents you got a 'ten bagger' Stop it winner, your getting my outside the square brain working again, 1 million shares times 1c times ten is serious coin, but I'll probably leave that to PT. PS-Old Slash was awesome at the concert last week aye.

[couta1]

I am going to wait till they report later this month before making a decision. You never know this may be a case of market capitulation and the reality may not be as bad. Keep the faith Couta :) There's a lot to be said for your last sentence, cheers.

[carrom74]

Tossing up whether to bail out, I'm only going to get my brokerage back so basically a total loss, too hard to say if and how long this dog will keep operating, and when the bank will pull the pin.

I suppose almost all the boarders are in the same state as yours...Why pay to the broker eh?..."how long in operation?' its anybody's guess....

[janner]

Why even bother ... Just passing through..

[whatsup]

I can understand there being sellers on the board but bidders/offers now that beats me , WHY when the debt mountain is so huge and looks like so little revenue !

[Jas001]

I can understand there being sellers on the board but bidders/offers now that beats me , WHY when the debt mountain is so huge and looks like so little revenue !

In this low interest rate environement, if the bank is patient and IQE can pay the interest, there is still chance the company can survive. 72 million debt means 4milion around interest which is still achieveable for current revenue.

I guess IQE needs to further cut the cost by reducing hierarchy/management levels, etc. To save cost, delist from NZX is also an option. To survive is the most important thing.

For quantum, if facing a lot of fine, bankcrupt the business is an option. If not too much fine but business is allowed to continue, this can add huge value to IQE.

It is in an industry with good future, especially if labour is elected with free 3 years tertiary education. It also has the potential to connect with Chinese/Indian Vocational education institution and increase student intake.

OCA and quantum failed on education quality and I hope IQE can learn a lot from it and improve.

In my opinion, acquisition more than 20% of its own business is risky. It needs to improve quality for its current colleges and grow bigger, not acquisition by debt.

[Brain]

I can understand there being sellers on the board but bidders/offers now that beats me , WHY when the debt mountain is so huge and looks like so little revenue !

One mans trash is another mans treasure

[Brain]

In this low interest rate environement, if the bank is patient and IQE can pay the interest, there is still chance the company can survive. 72 million debt means 4milion around interest which is still achieveable for current revenue.

I guess IQE needs to further cut the cost by reducing hierarchy/management levels, etc. To save cost, delist from NZX is also an option. To survive is the most important thing.

For quantum, if facing a lot of fine, bankcrupt the business is an option. If not too much fine but business is allowed to continue, this can add huge value to IQE.

It is in an industry with good future, especially if labour is elected with free 3 years tertiary education. It also has the potential to connect with Chinese/Indian Vocational education institution and increase student intake.

OCA and quantum failed on education quality and I hope IQE can learn a lot from it and improve.

In my opinion, acquisition more than 20% of its own business is risky. It needs to improve quality for its current colleges and grow bigger, not acquisition by debt.

Intueri have always said that the quantum issues are historical so they should be able to claw back any fines from the previous owners. Intueri have always had this mantra about quality and honesty so if they can stick to that and get through this mess they do have a future.
The market is totally spooked by the amount of debt and the exit from Australia and all the regulatory issues and quite rightly so. People buying now are going completely against the market and the combined wisdom of this thread. I hope they succeed because it would be nice to see a transfer of wealth from the fund managers to the small investor.

[Zaphod]

In this low interest rate environement, if the bank is patient and IQE can pay the interest, there is still chance the company can survive. 72 million debt means 4milion around interest which is still achieveable for current revenue.

Unfortunately, I can't see the current low interest rate environment being sustainable.

[axe]

I'm guessing all of the proceeds from the sale of the dive school are going straight to the bank.
I wonder how much they got for it? I wonder how much longer the bank can tolerate things?

I suppose if they bank waits wait till the dive school settlement comes in they can recover some more debt.

[Jas001]

I'm guessing all of the proceeds from the sale of the dive school are going straight to the bank.
I wonder how much they got for it? I wonder how much longer the bank can tolerate things?

I suppose if they bank waits wait till the dive school settlement comes in they can recover some more debt.

Dive school has only 29 students in 1H 2016, I guess full year may be 60 students, guess maximum 1 million of revenue, guess maximum 100k profit before tax. Base on this, guess it may worth a 1 million plus equipment, training boat, good will etc. I guess the selling price may be 2 million around, 3 million be lucky. May be one third of the price IQE paid years ago.

Guess as long as IQE can pay bank interest and show bank it can be cash positive for New Zealand division, bank will be let the business run. It is not good behaviour for bank to pull back money when borrower can still pay interest and business can still be break even. Not good for bank's reputation esp. it is a listed company and so many people are watching.

[Spartan]

Dive school has only 29 students in 1H 2016, I guess full year may be 60 students, guess maximum 1 million of revenue, guess maximum 100k profit before tax. Base on this, guess it may worth a 1 million plus equipment, training boat, good will etc. I guess the selling price may be 2 million around, 3 million be lucky. May be one third of the price IQE paid years ago.

Guess as long as IQE can pay bank interest and show bank it can be cash positive for New Zealand division, bank will be let the business run. It is not good behaviour for bank to pull back money when borrower can still pay interest and business can still be break even. Not good for bank's reputation esp. it is a listed company and so many people are watching.

I am not sure the bank will care about their reputation - they care more about getting their money back and not throwing good money after bad. I think it was the same situation (maybe even the same bank) as with Pumpkin Patch.

Banks look at whether there is a realistic chance of survival and turnaround ... ie meeting interest payments and repaying principal when it falls due. If the bank thinks there is, Intueri will get more time and more support. If the bank thinks there isn't, they will pull the plug.

[Onion]

Woohoo - up 23% just today. Keep this going and I'll have recouped my 94% loss in no time!

[Brain]

Intueri reports tomorrow. All the best to all the holders

[carrom74]

Same to you Brain... My only hope is it stays afloat... and that's the least I expect

[ddrone]

Looks like they're going to keep fighting on for a little while yet.

https://www.nzx.com/companies/IQE/announcements/297286

[Jas001]

One of my main concern now is whether intueri NZ can be cash positive for the year ahead. the annual report has loss of 22 million, minus 15 million impairment, still 7 million shortfall. Hopefully it's revenue can be enough for expense, at least break even.

[youngatheart]

Well, yet another funding source gone. Looks like it might be all over then... https://nzx.com/companies/IQE/announcements/297487

[Brain]

All very interesting. Intueri had the view that deregistration was highly unlikely and unjust. ASQA clearly see it differently. Either Intueri have been putting a very positive spin on their announcements or they are totally out of touch with reality. Most probably the expectation of receiving $5.8 M from the DET is equally fancifull. There is also a debt due of $5.1M to the vendors of OCA (very smart people) which is due soon. For Intueri to survive all of this the N Z operation will have to be very profitable. Intueri maintain they have restructured their schools and have had considerable cost savings. If true that would be good or is this just spin?

[Jas001]

All very interesting. Intueri had the view that deregistration was highly unlikely and unjust. ASQA clearly see it differently. Either Intueri have been putting a very positive spin on their announcements or they are totally out of touch with reality. Most probably the expectation of receiving $5.8 M from the DET is equally fancifull. There is also a debt due of $5.1M to the vendors of OCA (very smart people) which is due soon. For Intueri to survive all of this the N Z operation will have to be very profitable. Intueri maintain they have restructured their schools and have had considerable cost savings. If true that would be good or is this just spin?

I think the $5.1 million should be negotiated and not paid. The OCA vendor enrolled not qualified students to boost enrolment number and that's why the student number boosted suddenly, almost double in one year. That's why student cannot pass ASQA quality standard. Based on this nasty student number boost, vendor is qualified for bonus 5.1 million, that's really a dirty practice.

Investigation needs to be done on the way the previous vendor boosted student number, quite likely by paying too much agent fees under the table which may not be lawful.

The quantum education has had student quality problem so badly, I cannot understand why the higher management at the time did not think of quality issues for OCA and bought the remaining 50%.

The previous CEO left at the time ASQA audit is underway which is not disclosed to shareholders. His resign is quite likely to be related to the ongoing ASQA audit likely result and the potential sanction OCA is facing.

[Beagle]

All very interesting. Intueri had the view that deregistration was highly unlikely and unjust. ASQA clearly see it differently. Either Intueri have been putting a very positive spin on their announcements or they are totally out of touch with reality. Most probably the expectation of receiving $5.8 M from the DET is equally fancifull. There is also a debt due of $5.1M to the vendors of OCA (very smart people) which is due soon. For Intueri to survive all of this the N Z operation will have to be very profitable. Intueri maintain they have restructured their schools and have had considerable cost savings. If true that would be good or is this just spin?

The company will issue as much spin as possible to try and save their bacon so senior exec's can continue to earn their generous salaries. How long the bank will accept their corporate spin is the real question.

[Brain]

Companies have an obligation to keep the market informed. At what point does spin become dishonesty?

[Jas001]

It took so long for ASQA to make the decision, I thought it might be a good sign, but it it not. So many things not compliant.

https://www.asqa.gov.au/news-publications/news/asqa-cancels-registration-conwal-and-associates-pty-ltd-and-online-courses

[Brain]

You would have to say that that is a serious criticism of the company . It contrasts with Chris Kelly's comments about the A S Q A audit in Sept 2016.

He stated that "were confident we can rebuff much if what's been written in the audit"

and also stated that "were not the first company that's gone through an audit and not been given a clean bill of health"

Again the question is is he seriously deluded or is this spin or dishonesty?

[Spartan]

You would have to say that that is a serious criticism of the company . It contrasts with Chris Kelly's comments about the A S Q A audit in Sept 2016.

He stated that "were confident we can rebuff much if what's been written in the audit"

and also stated that "were not the first company that's gone through an audit and not been given a clean bill of health"

Again the question is is he seriously deluded or is this spin or dishonesty?

Probably a bit of both, Brain. He also said that the market had had "a bit of an over-reaction" to the ASQA news, sounding for all the world like a hapless old duffer completely out of his depth. Intueri no doubt hoped that his standing with Massey U would burnish their credentials. Talk about trying to polish a turd!

[carrom74]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11810700

"Intueri has retained boutique advisory firm, High St Capital, to assist with a strategic review, with options including the sale of some or all of its operations, with the end of April targeted to conclude a sale".----Found this paragraph in the report...In lay man's language IQE will be gone by April..Is this how i should interpret?? Please enlighten me thanks.

[Spartan]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11810700

"Intueri has retained boutique advisory firm, High St Capital, to assist with a strategic review, with options including the sale of some or all of its operations, with the end of April targeted to conclude a sale".----Found this paragraph in the report...In lay man's language IQE will be gone by April..Is this how i should interpret?? Please enlighten me thanks.

I interpret this as ANZ realising that Intueri has no chance of trading its way out of the situation.

The remaining "good" schools may produce a modest cash-flow surplus, but it will be a struggle just to pay off the interest-only payment on the NZD 70m debt (NZD 3-4m pa).

Given the overall context, with international student numbers from India falling and greater domestic scrutiny and competition, Intueri is most unlikely to be able to pay back any of the loan principal.

Given what has already happened with the Dive School, Quantum and now OCA-Conwal, ANZ has realised that Intueri and Arowana have been incompetent stewards of their loan, and have wildly overpaid for a series of dogs. ANZ's fear now is that the next skeleton which comes tumbling out of Intueri's closet will put them permanently under water.

So the bank has two options:

1) call in the receivers, who will try to sell off the schools and recover some of their money. This option has drawbacks: some of the remaining "good" schools may cease trading from lack of cash-flow, and a good chunk of the sale proceeds will be swallowed up by the receiver's costs, which are always considerable.

2) tell Intueri that they must sell the remaining schools as going concerns, and sell them as fast as they can. A two month sale process (end of April was mentioned) seems much too short for sensible buyers to do proper due diligence. This is a fire-sale timetable, and is a strong indication that the bank wants to cut its losses quickly and salvage what it can.

[Spartan]

Dear Carrom: I should have added that if either of these two scenarios takes place, IQE will cease trading and the shares will have zero value.

[carrom74]

Dear Carrom: I should have added that if either of these two scenarios takes place, IQE will cease trading and the shares will have zero value.

Thanks Spartan for your comments. I suppose it is just a matter of time that all this will be unfolded...

For the sake of poor shareholders money being involved, I would wish option 2 is the best choice and the directors should call for an EGM to keep the shareholders in the loop(face to face)

[Jas001]

At so low share price, I am quite disappointed to see no directors, executive team member, higher management to buy any IQE shares. It is really the time to buy if they have some confidence in it and I think it will boost market sentiment a lot also.

[Arbroath]

At so low share price, I am quite disappointed to see no directors, executive team member, higher management to buy any IQE shares. It is really the time to buy if they have some confidence in it and I think it will boost market sentiment a lot also.

Jas they are not buying because the company is essentially bankrupt and they don't want to lose money. I give it 3 months max before the plug is pulled.

[Jas001]

It is month end for March, the sale of diving school should have an outcome, and there is also milestone set by the bank for this month. I am expecting an announcement, but it seems not happening. I wonder why?

[Beagle]

I interpret this as ANZ realising that Intueri has no chance of trading its way out of the situation.

The remaining "good" schools may produce a modest cash-flow surplus, but it will be a struggle just to pay off the interest-only payment on the NZD 70m debt (NZD 3-4m pa).

Given the overall context, with international student numbers from India falling and greater domestic scrutiny and competition, Intueri is most unlikely to be able to pay back any of the loan principal.

Given what has already happened with the Dive School, Quantum and now OCA-Conwal, ANZ has realised that Intueri and Arowana have been incompetent stewards of their loan, and have wildly overpaid for a series of dogs. ANZ's fear now is that the next skeleton which comes tumbling out of Intueri's closet will put them permanently under water.

So the bank has two options:

1) call in the receivers, who will try to sell off the schools and recover some of their money. This option has drawbacks: some of the remaining "good" schools may cease trading from lack of cash-flow, and a good chunk of the sale proceeds will be swallowed up by the receiver's costs, which are always considerable.

2) tell Intueri that they must sell the remaining schools as going concerns, and sell them as fast as they can. A two month sale process (end of April was mentioned) seems much too short for sensible buyers to do proper due diligence. This is a fire-sale timetable, and is a strong indication that the bank wants to cut its losses quickly and salvage what it can.

Excellent post, in effect there is no question whatsoever that the company directors are under bank instructions to sell what they can at the best price they can as soon as they can.
For all intents and purposes the company is already in a stage managed wind down and shareholders will see nothing at the end of that process and these days you don't even get to have a share certificate to hang on the wall as a memento to remind yourself of the fiasco. Sadness all round for all involved.

[winner69]

It is month end for March, the sale of diving school should have an outcome, and there is also milestone set by the bank for this month. I am expecting an announcement, but it seems not happening. I wonder why?

last week they said 'Intueri has entered into a standstill agreement with its bank for the duration of the review.'

So everything on hold at the moment

[Spartan]

last week they said 'Intueri has entered into a standstill agreement with its bank for the duration of the review.'

So everything on hold at the moment

ANZ will not do anything to change the status quo for the time being. They will allow Intueri to continue trading, supporting them if required, and not put them into receivership.

[axe]

as long as there is cashflow from the NZ operations the bank will have a chance of getting it's money back


ANZ will not do anything to change the status quo for the time being. They will allow Intueri to continue trading, supporting them if required, and not put them into receivership.

[Jas001]

Yes, ANZ maybe 20% hooked, we shareholders are 100%. Guess now there are 3 important things pending:
1. Is there anyway to avoid the 5 million AUD payment to previous OCA owners before end of Jun? If not, IQE will be liquidated anyway when suited. Guess that's the reason why ANZ wants to have this strategic review and has it done before May.

2. Is ANZ willing to accept the 20% or whatever shortfall if IQE gets sold. If yes, end of story for IQE and its shareholders and this is likely to happen before end of Jun.

3. Is there any TEC fines after the Quantum review? If it is, it is likely to be multi-millions which IQE cannot afford, end of story too.

[JeremyALD]

I kind of wish IQE would get put out of it's misery once and for all. It's hard to watch.

[Beagle]

Two million crossed at 1 cent today. Market cap of the company is now $1m. Very "brave" buyer.

[carrom74]

Two million crossed at 1 cent today. Market cap of the company is now $1m. Very "brave" buyer.
This buyer could have bought lotto instead... probability is still the same In my view...

[Baa_Baa]

Two million crossed at 1 cent today. Market cap of the company is now $1m. Very "brave" buyer.

$20 grand punt on a turnaround. There's always someone who who will take a bet on the market, one wonders how the seller feels about unloading at $0.01, probably relieved to have not lost everything. Bitter sweet as that may be.

[hardt]

$20 grand punt on a turnaround. There's always someone who who will take a bet on the market, one wonders how the seller feels about unloading at $0.01, probably relieved to have not lost everything. Bitter sweet as that may be.


Some do well buying into bankruptcy, broken up, the company is worth more than its $1m mkt cap.

[janner]

Some do well buying into bankruptcy, broken up, the company is worth more than its $1m mkt cap.

Pass the Tui..

[Beagle]

Receivership is now a given in my opinion and if people can't see that from today's company stock exchange release they need new glasses but I wonder...if the shell can be washed clean what's the going rate for a shell company for someone to buy for a back door listing ? More or less than $1m ?

[hardt]

Pass the Tui..

I looked at their report...and yes, I am wrong about IQE having a net worth of more than $1M, but in all honesty, some people really do well buying undervalued businesses that are about to go into receivership.

PS. Im on Guinness

[Brain]

The bank will continue supporting them as long as they can pay the interest bill. Rod Marvin wrote in the last press release that the New Zealand operation is trading profitably so on tha basis they can pay the interest bill. The real problem as I see it is the amount of penalty they will need to pay for the quantum fiasco and also the $5m owed to the vendors of OCA.

[Balance]

Anyway, it's probably not a bad bet at 1 cent if you're a professional gambler. It's really a bet against the bank. Given how supportive ANZ have been and also how it dealt with Veritas it's seems likely that it will play nice and let Intueri sell off the assets in good faith. Could be an easy 5 bagger from here for those brave enough.

Zero confidence in the current Board and management.

ANZ is only interested now in recovering its debts.

Might as well go to the casino and put the money on black or red - 50/50 chance each time, and play it 5 times. That is what IQE has become - a sick joke and a lopsided gamble.

[JeremyALD]

Zero confidence in the current Board and management.

ANZ is only interested now in recovering its debts.

Might as well go to the casino and put the money on black or red - 50/50 chance each time, and play it 5 times. That is what IQE has become - a sick joke and a lopsided gamble.

Agree tbh based on information at hand I would of backed Dick Smith or Pumpkin Patch over this and we both know how those went! I guess if you're prepared to lose $100 or so it could worth a bet, but you maze well put a bet on the Warriors winning he NRL. Both have similar odds of success in my opinion!

[D. Fender]

Anyway, it's probably not a bad bet at 1 cent if you're a professional gambler. It's really a bet against the bank. Given how supportive ANZ have been and also how it dealt with Veritas it's seems likely that it will play nice and let Intueri sell off the assets in good faith. Could be an easy 5 bagger from here for those brave enough.

The question is, are the assets worth enough to repay the debts if sold? If the answer is "no" then the equity is worth nothing. The debt has to be repaid before the shareholders receive a penny. In this instance I think anyone buying the shares is throwing money down the drain.

[Beagle]

Zero confidence in the current Board and management.

ANZ is only interested now in recovering its debts.

Might as well go to the casino and put the money on black or red - 50/50 chance each time, and play it 5 times. That is what IQE has become - a sick joke and a lopsided gamble.

Agree 100% mate. Better odds at the casino. House only takes a few percent margin whereas at IQE the current management are probably scoffing at the trough for all they're worth at present, gorging glutinously while they still can.

[Schrodinger]

Some do well buying into bankruptcy, broken up, the company is worth more than its $1m mkt cap.

When debts (ANZ) exceed assets? You think they have some intangibles to flog? VERY risky. Have you estimated what the IRD and liquidators fees on top of debts?

[Balance]

Agree 100% mate. Better odds at the casino. House only takes a few percent margin whereas at IQE the current management are probably scoffing at the trough for all they're worth at present, gorging glutinously while they still can.

Sadly, I can recall advising a friend not to buy Feltex shares when they became penny dreadfuls. Ended with her losing close to $50k - she thought Feltex was going to be a 10 bagger, after a tip off from one of the Feltex insiders.

[Beagle]

Sadly, I can recall advising a friend not to buy Feltex shares when they became penny dreadfuls. Ended with her losing close to $50k - she thought Feltex was going to be a 10 bagger, after a tip off from one of the Feltex insiders.

The legal saga continues on that one. http://www.sharechat.co.nz/article/4b4f7702/former-feltex-shareholder-houghton-granted-leave-to-appeal-to-supreme-court.html?utm_medium=email&utm_campaign=Former%20Feltex%20shareholder%20Hough ton%20granted%20leave%20to%20appeal%20to%20Supreme %20Court&utm_content=Former%20Feltex%20shareholder%20Hought on%20granted%20leave%20to%20appeal%20to%20Supreme% 20Court+CID_197afaf63ec3dddefb5e822da0675a9a&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle4b4f7702former-feltex-shareholder-houghton-granted-leave-to-appeal-to-supreme-courthtml
Tough reality check for anyone looking to seek redress from IPO promotors...11 years and counting. According to the High Court at least, it would appear a certain amount of corporate "window dressing" (also known as corporate B.S.) is perfectly okay. Plenty of reason to give pause for thought to anyone contemplating an action against the directors of this pup. How many millions have been spent on legal fees already ? How many millions more will be lost in costs to the defendants if the Supreme court case fails ? Goes without saying that we know who the real winners are from this. Some QC's around $10,000 a day plus GST, I have heard of one who shall remain nameless that wants $20K a day !

[Spartan]

The question is, are the assets worth enough to repay the debts if sold? If the answer is "no" then the equity is worth nothing. The debt has to be repaid before the shareholders receive a penny. In this instance I think anyone buying the shares is throwing money down the drain.

Spot on comment.

Given the current environment, this is not a great time to be trying to sell a bunch of PTEs:

1) Domestic-focused institutions are suffering from demographic changes and full employment, which is counter-cyclical with tertiary training.

2) International-focused ones are being targeted by the Minister's immigration changes, which have just delinked study from the pathway to residence, severely affecting the Indian and other migrant markets.

So Intueri's current profitability is not an indication of what the future holds. IMHO, the total asset value of Intueri's holdings is way below what they owe the bank.

[whatsup]

Someone wants to buy 10% on market. LOL.

$60 K BIG PUNT imo !

[winner69]

Seems like its all over bar the shouting

How many zillions lost

[couta1]

Seems like its all over bar the shouting

How many zillions lost The sooner this Dog is put to rest the better, what a complete shambles. PS-On a % basis, my biggest loss making company ever(Only covered the brokerage cost) fortunately I only had a smallish holding.

[Rep]

The sooner this Dog is put to rest the better, what a complete shambles. PS-On a % basis, my biggest loss making company ever(Only covered the brokerage cost) fortunately I only had a smallish holding.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11867350

Tipped into voluntary administration...

[Beagle]

Good that the students and staff haven't been affected and I hope someone sues the directors, although exactly what might be actionable I can't say because sadly, gross incompetence is not an actionable matter.

[foggleboggle]

Now owned by ACG Education which is owned by Pacific Equity Partners whose head office is in Sydney. Don't know if PEP is entirely Aust. owned but with head office in Sydney wouldn't be surprised. Has anybody started a class action for losses - should stand a good chance of success.

[percy]

Some of us never learn,......I brought a few KNM on the asx this afternoon....lol.

[foggleboggle]

Aust companies were trading under names of Conwal and Associates Pty Ltd. and Online Courses Australia. When you read why Aust. Gov. cancelled their registration as providers of VET you can see what was going on. Anybody can read it on www.asqa.gov.au . Think class action could well succeed.

[stoploss]

Some of us never learn,......I brought a few KNM on the asx this afternoon....lol.
Welcome to the party .

[percy]

Welcome to the party .

Could be a lot of fun.?
Think KW and mates are there already?

[foggleboggle]

Could be a lot of fun.?
Think KW and mates are there already?

Am new to this. How do I track KW. I think a variety of Governance statements by the Board and management are so at odds with what ASQA found that nobody in their right mind would have bought shares had they known what was going on. Intueri has professional liability insurance I understand which should cover a significant figure.

[Hectorplains]

Am new to this. How do I track KW

Not here, she's active at

[Fisherking]

What are you proposing foggle?

[foggleboggle]

What are you proposing foggle?

Over $200mill lost. Wondering if there is a class action going in NZ. I am in your big west island Aus so don't know what is happening in NZ.

[WAIKEN]

No duty of care shown to shareholders
There must be a case for class action against directors ie the PI insurers

[Hectorplains]

No duty of care shown to shareholders
There must be a case for class action against directors ie the PI insurers

Isn't TEC still faffing around with their report?

[foggleboggle]

No duty of care shown to shareholders
There must be a case for class action against directors ie the PI insurers

Shareholders have the right to ask the Board and management if they were grossly negligent and/or were derelict in their duty at least in Australia. Australia accounted for approx. 25% of revenue. ASQA cancelled the registration of IQE's two Aust. companies as a result of activities or lack thereof as set out in ASQA's report. The loss of 25% of revenue had a very serious effect on the business. Shareholders had no idea of what was occurring especially in the light of the various Governance statements of the Board and management. About 75% of shareholders are in NZ. Shareholders do not have the right at this stage to accuse the Board and management of gross negligence and dereliction of duty but they do have the right to check if this has occurred by way of a class action in court which should be done.

It would have to occur in NZ so it would be best to be instigated by NZ shareholders. Most Aust. shareholders would be supportive I would think. I believe that there would be a good chance of success. Any action should not be limited to these two matters as there may well be other matters which could increase shareholders chances of success.

[moka]

https://www.nzx.com/companies/IQE/announcements/306576

IQE / Announcements

IQE Appointment of Liquidators to Intueri NZ entities

10:38am, 1 Sep 2017 | RA

Intueri Education Group Limited (In Liquidation) (“the Company”)
Appointment of Liquidators to Intueri New Zealand entities
William Black and Conor McElhinney, partners of McGrathNicol, have today been appointed Liquidators of Intueri Education Group Limited (NZX: IQE) and its New Zealand subsidiaries by a resolution of the creditors of the companies at the Watershed Meeting.

[couta1]

This Dog is finally going to be put down, about time.

[winner69]

More like taken behind the shed and shot.

But some made zillions out of all this - capitalism at work eh

[Brain]

You are being charitable Ogg. I believe the directors and management were totally incompetent and asleep at the wheel. They appeared to have absolutely no understanding of the market they were in and failed to do proper due diligence of the businesses they were buying.This is the reason this company failed.

[foggleboggle]

We shareholders should not give up too easily on this one. There could be a long way to go yet. Keep in mind that the McGrath Nicol report gives scant regard to the plight of shareholders. Check it out. If shareholders keep being treated like mangy dogs in these situations then mangy dogs will have to bite to get attention.

The share market depends on an orderly functioning process. Continually in these situations we are treated as collateral damage. Our financial system is now very dependent on shareholders. If shareholders lose confidence then who knows what could happen. Keep in mind in this case that there is about $150-$200million at stake. The Board and Management are by no means out of the woods yet. Common law processes as well as other possibilities could well come into play. Also there seems to have been a very significant failure to keep the market advised about serious non compliant matters - so much so that had anybody known the true position of how the company was functioning on certain matters then one would have not gone within a bulls roar.

In view of the amount of money involved and the types of avenues available to groups of individuals then we should keep our powder dry. Hang in there and wait to see what transpires as the amount of money down the drain is of a significant nature. So far we have received virtually no help from McGrath Nicol as they seem to not be very interested in us. That does not mean a great lot as they are only one in the whole equation.

As far as Ogg is concerned I cannot understand what he means by "The business as a whole is profitable and over the long term should recover". The business has been sold and as far as shareholders are concerned is of nil value.

[foggleboggle]

Really Ogg when you say the business is profitable one wonders where you are coming from. Do you understand what profitable means. I thought McGrath Nicol were appointed Liquidators. There is a long way to go in this yet. Mangy dogs may be mangy but they are sometimes pretty capable.

[foggleboggle]

We don't really know what is happening now and in any case it has no bearing on what happened previously. Once the TEC report comes out shareholders can look more clearly at what types of actions can be taken. Liquidators have a very bad record of looking after shareholders so we can forget about McGrath Nicol. You mentioned one shareholders name before but if I remember rightly employees of that company were also Board members which would almost certainly colour their response. In any case there are hundreds of other shareholders who need to be encouraged to look for avenues to recover the very substantial amount of money lost. If a funder can be found - which is highly probable - then a class action is most certainly in the wings.

[oldtech]

Not that it makes a lot of difference at this stage, but ... IQE Shares to be delisted on the 16th of October.

https://www.nzx.com/companies/IQE/announcements/308400

[percy]

The book is finally closed on this one...

http://www.tec.govt.nz/assets/Reports/Quantum-Education-Group-Ltd-December-2017.pdf

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11978407

"Quantum had 1741 enrolments in 2013,when Intueri prospectus stated it had 4628."
???????..........
Explaining the discrepancy adds more ??????????? to me.
I think these ???????????? should have be put to the test in a court of law.
The Intueri prospectus was false.
The fact Arowana pocketed over $114 mil only adds fuel to the fire.
It was more than "woeful management practices."

[Hectorplains]

"Quantum had 1741 enrolments in 2013,when Intueri prospectus stated it had 4628."
???????..........
Explaining the discrepancy adds more ??????????? to me.
I think these ???????????? should have be put to the test in a court of law.
The Intueri prospectus was false.
The fact Arowana pocketed over $114 mil only adds fuel to the fire.
It was more than "woeful management practices."

Yep, if this happened in Australia it would've sparked a class action - as it has for another failed Ed provider in Ashley Services. Is it the lack of ambulance chaser law firms (Maurice Blackburn, Slaters et al) here?

[Brain]

NBR reports that the liquidators are taking legal action against individuals and organisations associated with the company.

ANZ owed $52m and unsecured creditors $6.6m

shareholders lost a fair bit too

Perhaps we will get to understand the level of incompetency and possibly dishonesty that led to this total trashing of shareholders wealth.

[couta1]

NBR reports that the liquidators are taking legal action against individuals and organisations associated with the company.

ANZ owed $52m and unsecured creditors $6.6m

shareholders lost a fair bit too Absolute mongrel of a company, lost everything so that's a fair bit.

[carrom74]

Intueri Class action to be initiated...


https://www.adinathorn.co.nz/lawyers-with-expertise/class-actions/intueri-shareholder-class-action/

[couta1]

Intueri Class action to be initiated...


https://www.adinathorn.co.nz/lawyers-with-expertise/class-actions/intueri-shareholder-class-action/ Might as well register as nothing to lose. Lol

[carrom74]

Might as well register as nothing to lose. Lol

Yup... Just completed my registration....and as you say... nothing to lose...(as we have lost all:eek2:)

[Brain]

With Arowana netting $110m from a possibly dishonest prospectus this one could be more likely to succeed than CBL.

$110M less the class action fees distributed amongst 75,000,000 non Arowana shares could represent some compensation to the shareholders

And of course the directors may well be liable as well.

I am optimistic with this one.

[Airw0lf]

Yup... Just completed my registration....and as you say... nothing to lose...(as we have lost all:eek2:)
What are they referring to when they ask for your "Holding Number"?

[couta1]

What are they referring to when they ask for your "Holding Number"? Your CSN number.

[Airw0lf]

Your CSN number.

Ah, bingo. Thank you.

[Onion]

Email arrived today...


Thank you for registering your interest for the proposed Intueri Shareholder Class Action (the Action). Based on the information you have provided, we are pleased to confirm that you are eligible to join the Action as a represented plaintiff.

They are inviting shareholders to join the action. There are lots of documents to read. And they advise getting legal advice.

A quick read indicates that the funders of the action will collect 25% of the settlement amount (if any) plus costs.

Plaintiffs are not liable to pay anything if the action fails.

So there is a chance of some dosh and no downside. Can anyone see any reason NOT to sign up?

Who's signing up? Anyone?

[NZSilver]

What is the eligibility criteria? I held but sold out

[TideMan]

So there is a chance of some dosh and no downside. Can anyone see any reason NOT to sign up?



Yes, I've signed up on this basis.

[couta1]

All signed up, looks like a very long process so just wet and forget.

[Onion]

What is the eligibility criteria? I held but sold out

You have to provide evidence that you were a shareholder. I uploaded copies of contract notes to their web site and must have passed the eligibility test.

https://www.adinathorn.co.nz/lawyers-with-expertise/class-actions/intueri-shareholder-class-action/

[Onion]

An email arrived indicating the next stage of the class action is under way. I have agreed to be part of the action:


Thank you for previously registering your interest for the Intueri Shareholder Class Action (the Action).

Legal proceedings against Arowana International Limited (now AWN Holdings Limited) it’s directors and certain former directors (of Intueri) were filed in the Auckland High Court on 3 April 2020, and are well underway.

The Court has granted representative orders meaning the proceeding can be run efficiently, with the named plaintiffs representing all other shareholders who have opted in, with the benefit of any judgment also applying to their claims.

The deadline for further shareholders to join the class action is 5pm on 29 October 2021.

This is your final opportunity to join the Action as a represented plaintiff.
The next step is for you to click on the link here

[Onion]

Received this by email today. I wonder if anything will come of it?:


Good morning,
Thank you for completing your registration for the Intueri Shareholder Class Action.

We are pleased to inform you that LPF Litigation Funding No.30 Limited accepted your Funding Agreement on 21/09/2021 in Auckland.

This means you are now part of the class of claimants for the Class Action. We are progressing the claim and will keep you updated.

Thank you again for your involvement.

Kind regards
...

[Dave]

Received this by email today. I wonder if anything will come of it?:


[/FONT][/COLOR]
[/FONT][/COLOR]
Yeah - post again if you have any luck. I decided not to participate as I only had a small holding (bought as a punt because of it's popularity in the Herald New Year broker picks that year ...lol). It looked like participating implied a liability for legal fees even if unsuccessful, so decided to quit while behind.

[couta1]

Yeah - post again if you have any luck. I decided not to participate as I only had a small holding (bought as a punt because of it's popularity in the Herald New Year broker picks that year ...lol). It looked like participating implied a liability for legal fees even if unsuccessful, so decided to quit while behind. Nope, no liability for legal fees if unsuccessful.

[Dave]

Nope, no liability for legal fees if unsuccessful.
Too long since I read the stuff... it was the potential liability if the litigation funder became insolvent or such (unlikely I guess) and there was nothing to pay the lawyers that put me off (the holding was only about $3k)