Is it worth a new thread - "Management & Executives of failed finance companies"?
REL: 1556 HRS Viking Capital Limited
GENERAL: VIK: Viking Slams Dorchester Announcement
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PRESS RELEASE
Viking Slams Dorchester Announcement
We have been approached by a number of members of the Media to comment on the
Dorchester Pacific Press Release dated 1st May 2008.
As a significant shareholder, we wish to state our position so different
media do not get a different understanding.
Our position is as follows:
Until the appointment of Walker, Dorchester had been managed very
conservatively with respect to its capital ratios and lending policies. The
company had also been diversified so that it could meet its targets even when
conditions in the finance sector worsened. This situation was predicted by
previous management. Walker and the board out of ignorance changed the
business model by:
1. Making large loans on illiquid assets.
2. Investing precious capital reserves in an ill considered manner.
If they had stuck to the business model they would have had the opportunity
to make excellent profits now. Dorchester would have been in a vastly
different financial position to other finance businesses which have failed,
because it would have had financial reserves. With less competition, rising
interest rates and an increasingly desperate base of potential borrowers the
time would have been ripe. Instead, they squandered that opportunity. With
experienced management, a new board and support from its funding base,
Dorchester would still be a fantastic business, but it desperately needs
quality management and governance.
Announcement
We are stunned by the announcements and do not believe that this is an
acceptable statement from a Board of a public company.
The statement concerning the write down of the St Laurence is bewildering.
Only 2 months ago Dorchester made its first profit downgrade announcement
without any reference to a revaluation of their investment in St Laurence.
Three directors of Dorchester, namely Barry Graham, Kevin Podmore and Andrew
Walker are also directors of St Laurence Ltd. Surely they would have known
of the deterioration of Dorchester's investment at that time.
To announce a write down of the St Laurence investment only one year after
the original acquisition is unacceptable. The euphoric statements from the
Chairman and CEO ("This deal was the best deal I have ever done ") at the
time are now quite absurd.
Clearly the wasting of $20.m cash at that critical time was a very poor
decision.
Vikings position, along with many other Dorchester shareholders was that the
price paid was too high and this has been borne out.
There may be more matters to surface about this deal and many people are
watching this with interest.
We are deeply concerned about the overall state of the company and the
performance of the Board and the CEO who has now resigned. We continue to be
concerned with their lack of transparency in company statements. For
example, you would expect more detailed information on the reasons for the
resignation / termination and the date of his departure to be stated. It
would further be normal to state what the financial implications, if any, for
the company were from this resignation, e.g. bonuses etc.
We believe it is incumbent on the board to advise the market their plan for
the management of the Company in the short and medium terms.
We are equally concerned about the impact of the announcement on the future
of the Company and the implications for investors, staff and minority
shareholders. We will make further comments early next week.
viking slam dpc.. but I am here to slam viking..about bio... same things heppend here..
[QUOTE=belgarion;197
Will see what the market does and perhaps buy some at todays low. Volumes are pretty thin still.
discl: recent holder and buying.[/QUOTE]
Not a wise move, my friend. Dare I remind you of FTX? This one is also headed for oblivion.
Running downhill, trying to catch a rolling cheese, can result in one falling flat on one's face.
The AGM will be very interesting is mr Byrne planning to dramatically change the board he has A lot of shares and possibly accumulating more
GC do you really think Vik didn't slam ICP-Bio, cause it would have. Just would not have done in in public, as they have a consructive working relationship. Unfortunately the DPC board and Management have totally dislike for VIK and see them as a threat, so as Viking expected, when DPC management stuffed up, Vik stepped up and slammed them for six. Fair enough after all BK and Vik accurately predicted what faliures DPC would have. I wonder what Hugh Green is thinking today? Will he and BK lay down their guns long enough to to fix DPC, because, to be frank, I dont know, 2 better candidates to take on this task and succeed. Interested in other opinions? Who can fix DPC's deep seated problems?, name your candidates!:eek::eek:.
For the first time I will have to agree with the announcement by BK. It is totally unacceptable and disgraceful. The board on DPC should be sacked and replaced!
I am still wondering why Brynes is accummulating stock. This game is not over yet. Abit like watching daytime soap opera.
I will be at the AGM to give them a blasting!
Dr Who at least those two have got no conection to the ST Laurence mess
This is going to be great. The Annual Meeting is going to be a ripper. I am thinking of selling my proxies 1 share at a time on trademe. The returns will be better than than owning shares in DPC. Their graph looks like the downhill ski run at Coronet Peak.
More stone throwing next week.
In the red corner Barry Graham, happy to be a director when Brent King ran Dorchester and nod at the appropriate time and happy to turn on him after he left. In the blue corner BK who unloaded his shares to Petrocevic at $4 a share and struck a few nerves.
VIK are right to ask about the termination / resignation exit of A Walker.
LEW
I wonder if the latest downgrade is a result of the current year-end audit that will be underway as we speak?
Can't wait for the annual result...
As I have previously said, if they have even half-decent finance company software, they should be able to do a liquidity analysis at the push of a button.
Walker is not being replaced.
No rights issue.
No tie up with St Laurence.
NTA at least $1.10.
Liquid, and can meet on-going obligations.
Byrnes buying.
Now a very small Company, declining business.
Has talked about establishing a niche debt collection business, utilising its existing resources.
Looks like its being readied for merger or T/O to me. Good listing opportunity for someone?
Disclaimer: I may have made this up.
I hope you are right Ears. Where did you get the NTA of $1.10 taking out STL?
I have a feeling this is primed for a T/O.