Moody’s Investor Service has downgraded Mobius ELR-01 notes. 23% of the ELR-01 pool is made up of debt associated with Bill Express equipment in newsagencies. In the announcement about the downgrade, Moody’s said
The rating action follows the appointment of liquidators of Technology Business International Pty Limited (TBI) and the appointment of administrators to a related party, Bill Express Limited. TBI is one of the originators and primary services of the receivables securitised through the transaction. Moody’s also notes the further deterioration in the performance of the underlying receivables pool as well as the residual uncertainty surrounding the servicing transfer process currently taking place.
In particular, Moody’s notes the following:
– TBI was placed into liquidation on June 30, 2008 and Bill Express into administration on July 8, 2008. Bill Express is a provider of payment and transactional services to a large number of Australian newsagents. The services are available via equipment provided and leased to the newsagent obligors by TBI, with the underlying leases representing the Mobius ELR securitised pool attributable to TBI.
– The services previously provided to the obligors by Bill Express have been discontinued, rendering the computer equipment ineffective.
– While Moody’s believes the contractual arrangements to repay the equipment leases in full continue to be legally robust, there is a significant risk of non-payment or delay in payment by the underlying obligors. Any such action may result in both temporary payment shortfalls and permanent principal loss to the Mobius ELR-01 notes.
– The AUD 15.6 million TBI-associated portfolio currently represents approximately 23% of the Mobius ELR-01 pool. The rating action incorporated Moody’s views with regard to the likelihood and extent of any potential loss suffered by the transaction as the result in turn of the situation surrounding TBI and Bill Express.
So, we now know the amount of newsagent money involved – $15.6 million. This figure, more than anything else I have published here, ought to attract attention from newsagent associations to fix such an expensive problem for newsagents.
$15.6 M is only $4500 per Newsagent distributed over 3500 Newsagents. Have I missed something? That is probably all the equipment was worth when it was new, The rest of the $ amount was management, subsidies and online support of the service. I think maybe there should be a breakdown of the rental amount and where it was distrbuted.
They have another thing coming if they think there getting a cent out of me. Their equipment is here if they want to pick it up that as far as my obligations go as far as I am concerned.
Hi Darryl,
Remember that quite a lot of newsagents either didn’t go down the Bill Express route and also that some have completed their obligations under their contract or didn’t renew with the larger screen.
Mark is right – The associations have now been given a tremendous opportunity to show their members, and the wider market of potential members, just what they stand for and how they support their own membership.
VANA have about $3 million in member fees tied up in assets, doing nothing for their members. The ANF and others must be in the same boat.
Let’s now see the members funds put to work on behalf of the members, to support the members. I for one would love to see a pro active reaction. I’d like to see some reaction.
Have a good day
Mobius bought the debt for $15.6 million at a discount rate. Mobius already priced the risks in when it purchased the debts from TBI early this year. So the original debture is worth around $30million. I’m too upset to ask, has anyone inside ANF done the due-diligence for the TBI contract before? No one at ANF had a look at TBI contract five years ago? If ANF knew it’s such a bloody cheating contract, why it promotes to the industry? I listened to ANF’s recommendation then, and I trusted them. Now I found I should seek independt advice at any time and not trust anyone including ANF.
As soon as I found out the con man (women) that dudded us on Bill Express is now working for the ANF, solidified for me at least, that the ANF has no integrity at all and could not give a rat’s arse about Newsagents. As soon as these complicit fools go away it will be a good day for us all. Just my point of view 🙂
Was Mobius told that this is not a “real” debt and that they could get 3500 agents sueing them?
Mobius should ask for a refund or take the risk in getting their name tarnished.
Michael, I’d expect the Mobius agreement to have coverage of this. This could be one reason why TBI appointed a liquidator – so Mobius could not come back and bite them. But, then, I am no expert.
Mark
Peter,
here here
I have asked anf to take me off thier email & fax list, along with that N-thing with the “new-beaut- rebates”
As far as I’m concerned anything that comes from such bludging imbeciles is lies & rubbish.
on my rental document the title states….bill express ltd on behalf of mobius financial services pty ltd…….I think mobius and bill express have been in bed for a lot longer than the last couple of months
Jason, I’ve got the same thing on mine.
If Mobius have been in bed with BE for so long they must have known 3500 agents would be after them when it fell. If their defence is in the original contract it is not very strong.
They, if I’m right(and not sure but…) should have been a BE creditor at the liquidators meeting hence we hand back the machines and all is good.
Our owing rental should be written of as a loss by the liquidators because it is.