​Troubled mortgage company loses director

by 10 Feb 2014
Firstfolio has announced the company’s interim CEO has agreed to stand down from his position following recent issues with the firm’s recapitalisation proposal.

Mark Flack was appointed to the position of CEO in July last year until completion of the company’s $50.2m recapitalisation proposal, following which he was to be appointed managing director of the company.

He was appointed as nominee of IZN Investments Ace Management, the company which has agreed to invest a minimum of $39.5m of equity capital in Firstfolio.

The mortgage company announced last month that IZN had missed the January 20 deadline and was unable to confirm when the funds would be transferred.

“As previously announced, the company has not exercised its right to terminate the Recapitalisation Proposal Subscription Agreement and understands IZN is continuing to take steps to deliver the Recapitalisation Funds,” said company secretary Dustine Pang.

“The board, with the assistance of Grant Samuel Corporate Finance, is continuing to consider potential alternative transactions to the Recapitalisation Proposal.”

The board has appointed Greg Pynt, an executive director of the company, to oversee the activities of Firstfolio until the recapitalisation proposal proceeds or a permanent new CEO is appointed.

COMMENTS

  • by Jack O'Neill 10/02/2014 9:32:33 AM

    Terrible run of luck as of late - a poisoned chalice of sorts

  • by oldBroker 10/02/2014 11:26:58 AM

    Their troubles were orchestrated by Mark Forsyth, who was only concerned with acquisitions and growth... and the company's operations fell apart. They bought LSA which was a very efficient, very profitable money manager and absolutely trashed it. Same with Lawfund. Mark Flack was the wrong choice to clean it up since he was part of the problem. This company, and it's incompetent managers, should fade away.

  • by Melbourne Broker 11/02/2014 5:26:39 PM

    I can't understand why some Board members have not also resigned. This strategy must have been approved by them and yet Mark Flack seems to be "carrying the can" for it. These Directors (mostly) were responsible for the strategy pursued by Mark Forsyth and finally they realised that he was not able to extract value out of all the various acquisitions and sacked him. They then appointed David Hancock and sacked him after a few months when the disagreed with his vision and strategy moving forward. How they couldn't have some idea of his views before they hired him is hard to fathom. Then they recycled Mark Flack and now they've sacked him after another strategy plan has gone belly up! From reading the ASX announcements, it doesn't look like the injection of funds under the great Recapitalisation Proposal will be happening any time soon and it has taken around 12 months to get to this point! And then there's the note in one report to the ASX "in the absence of the IZN Recapitalisation proceeding, the Independent Directors consider that there will be a significant uncertainty as to the ability of Firstfolio to continue as a going concern." The future really looks good - NOT! I think it's about time that some Directors took responsibility for a number of failed strategies over the years and fell on their swords. Hopefully there's a "white knight" galloping to the rescue but I suspect not!