|
Date
|
Committee
|
Prepared/ Recommended By
|
Supported
By
|
Applicant
|
Recommendation
|
Recommendation
Approved?
|
Developments
|
| 17.05.88
#361
|
LCC comprising of:
K S Matthews, CGM
G S Ottaway, GMGS
J B Macky, GMGIS
D C Masters, GMCB
V R Pfeiffer, CMRL
R L Wright, CMIB
|
M C Shipp, MCB 11.05.88 |
P F Mullins, CMCB |
Remmadell |
Participation in $80.0M
construction support facility via issue of $40.0M Letter of Credit subject to attempt to
sell down $20.0M within three months |
LCC recommends proposal to Bank
Board Sub Committee for approval subject to attempting to sell down $20.0M of risk within
three months. |
Remm to provide $20.0M cash to be
utilised first in the event of overruns. Bank funds to be called upon as last resort
($40.0M ANZ/$40.0M the Bank). At this point, the Bank had following exposure:
O/S Liab. Total Committed
$ $
142.0M 42.0M
27.7M 8.0M
3-- 40.0M
1 Bank - Centrepoint Pty Ltd (Myer relocation)
2 BFC - REMM Group Ltd
3 Bank - this application.
|
| 17.05.88 |
Bank Board Sub Committee
R P Searcy
K S Matthews
D W Simmons
|
K S Matthews
Chairman, LCC
13.05.88
|
|
Remmadell |
As per 17.05.88. Approval to be
subject to Lending Credit Committee granting approval on 17.05.88. |
Not sighted but proposal to Bank
Board of 26.05.88 states that Bank Board Sub-Committee approved the proposal on 17.05.88. |
|
| 26.05.88
#88/151
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
M V Byrne
R E Hartley
W F Nankivell
R P Searcy
|
D C Masters, GMCB
18.05.88
|
|
Remmadell |
As per 17.05.88 |
Yes |
|
| 27.07.88
#389
|
LCC comprising of:
K S Matthews, CGM
D C Masters, GMCB
T L Mallett, GMTIB
R L Wright, CMIB
|
P F Mullins, CMCB
27.07.88
|
J V Henderson SM Victoria and
Tasmania |
Pazadore Pty Ltd (trustee for Myer
Centre Unit Trust)
("Pazadore")
|
To approve (1) Bridging Facility
of $120.0M plus a commitment as Lead Agent to underwrite an additional $330.0M of
syndicated project financing subject to the Underwriting Commitment being "risk
underpinned" (sub-underwritten) up to $200.0M by State Government Insurance
Commission ("SGIC"), (2) a one third participation in a $125.0M Put Option, and
(3) final participation of $120.0M on completion of the syndication, together with a
Letter of Credit Standby funding line of $40.0M |
Yes |
Proposal includes 14 pages of
discussion of the project and annexures giving some details of REMM history and project
viability. |
| 28.07.88
#88/238
|
Bank Board comprising of:
L Barrett
R D E Bakewell
W F Nankivell
T M Clark
Mrs M V Byrne
R E Hartley
R P Searcy
A G Summers
|
P F Mullins, CMCB |
J V Henderson, State Manager
Victoria and Tasmania
D C Masters, GMCB
|
Pazadore |
As per 27.07.88 |
Yes |
As per 27.07.88 |
| 23.08.88
#396
|
LCC comprising of
K S Matthews, CGM
D C Masters, GMCB
V R Pfeiffer, CMPBL
R L Wright, CMIB
|
D C Masters, GMCB
22.08.88
|
|
Pazadore |
Progress report. All advance
procedures completed. Advancement of funds to proceed. |
Yes |
SGIC committed in letter to
underpin $200.0M of risk. The Bank's $40.0M Letter of Credit to increase to $50.0M to
provide for government and statutory charges. The extra $10M to be provided by SAFA.
Verbal agreement reached for Myer to fulfil their obligations under the Heads of Agreement
signed with REMM to temporarily vacate the premises. |
| 22.11.88
#418
|
LCC comprising of
G S Ottaway, GMGS
D C Masters, GMCB
J B Macky, GMCB
R L Wright, CMIB
|
P F Mullins, CMCB
22.11.88
|
|
Pazadore |
Extend Bridging Facility term by
three months to 28.02.89 and increase facility by $30.0M to $150.0M |
Yes |
South Australian Financing
Authority ("SAFA") agreed to accept a silent risk participation of $10.0M in an
increased Letter of Credit of $50.0M provided by the Bank. An independent advisory team
put together to oversee project and authorise progress payments for the Bank. |
| 24.11.88
#88/464
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
22.11.88
|
|
Pazadore |
As per 22.11.88 |
Yes |
As per 22.11.88 |
| 22.12.88
#88/533
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
16.12.88
|
|
Pazadore |
Progress Report |
N/A |
Colliers International Property
Consultants valued residual land at $152.0M. All tenants have vacated site. Industrial
relations stable. Information to be sent to banks interested in participating in
syndicates. |
| 26.01.89 |
Bank Board
comprising of:
L Barratt
D W Simmons
R D E Bakewell
W F Nankivell
R P Searcy
T M Clark
|
|
|
|
|
|
Directors considered the level of
commitment by the Bank.
Chief Manager, Corporate
Banking to prepare a monthly paper for information of Directors.
|
| 22.02.89
#13/89
|
LCC comprising of
K S Matthews, CGM
D C Masters, GMCB
P F Mullins, CMCB
|
P F Mullins, CMCB
22.02.89
|
|
Pazadore |
Extend Bridging Facility by two
months to 30/4/89 and transfer $20.0M in approved limits from the Project Underwriting
Facility to the Bridging Facility taking it to $170.0M |
Proposal recommended to the Bank
Board for approval. |
|
| 23.02.89
#89/45
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
22.02.89
|
|
Pazadore |
As per 22.02.89. |
Yes |
To provide for regular progress
payments as the Project continues during the syndication process. |
| 23.03.89
#89/82
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
22.03.89
|
|
Pazadore |
Update report for noting. |
Noted |
Some industrial relations
problems. On-site work is six weeks behind schedule.
Expressions
of interest for $285.0M had been received from eight banks (including two major banks).
|
| 27.04.89
#89/142
|
Bank Board comprising of:
L Barrett
D W Simmons
Mrs M V Byrne
W F Nankivell
R P Searcy
T M Clark
|
P F Mullins, CMCB
26.04.89
|
|
Pazadore |
Extend Bridging Facility term by
three months to allow project to proceed until syndicated financing was in place. |
Yes |
Problems with Glen McMahon Ltd
(demolition contractor) put the Project behind schedule. Numerous negotiations have taken
place between REMM, the Bank, the South Australian Premier, Minister for Labour, and
leaders of building unions involved. McMahon to finish demolition. by 30.06.89 - six weeks
later than planned. Also all unions have agreed to a nighshift and should result in time
savings. September 1990 deadline still considered to have a buffer of nearly six months. A
$4.7M payment was made to McMahon in settlement. Loan documentation for syndication is
being drafted by solicitors - Mallesons (Sydney). David Chandler (Australian Pacific
Projects) commissioned to do an independent review for cost overruns and areas of risk. |
| 25.05.89
#87/187
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
18.05.89
|
|
Pazadore |
Update for Noting |
Noted |
Current outstandings are $156.5M
out of $170.0M committed. Project moving along according to plan with McMahon. If
nightshift option is not feasible because unions won't agree to it, REMM estimate of final
completion date moves out to February 1991. Nightshift would cause cost overruns of
$14.0M. Syndication held off until a full review of project costs completed by D Chandler.
One lease signed. Centrepoint site sale negotiations continue. |
| 19.06.89
#42/89
|
LCC comprising of
K S Matthews, CGM
D C Masters, GMCB
S G Paddison, GMPBB
P F Mullins, CMCB
|
A B Turnbull, Manager Asset Sales
and Syndications
16.06.89
|
P F Mullins, CMCB |
Pazadore |
Transfer of $20.0M in approved
limits from Project Underwriting Facility to Bridging Facility bringing Bridging facility
to $190.0M |
Yes |
Demolition expected to be
completed by 23.06.89. D Chandler interim report requires REMM to answer certain
questions. Meanwhile, funds are needed to cover core project costs and prevent unstabling
of labour relations. The $20.0M was to cover payments to subcontractors, trade creditors,
wages and capitalise interest through 31.07.89. It is not to include direct costs of REMM.
October 1990 completion date set by REMM. Pazadore paid fee to SGIC
terminating SGIC's Put Option arrangement since total project cost now estimated at
$490.0M to $510.0M. Contract documentation needs adjustment to provide Bank increased role
in project management. REMM may have weak management and are unable to fund cost overruns.
|
| 22.06.89
#89/200
|
Bank Board comprising of:
L Barrett
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
16.06.89
|
|
Pazadore |
As per 19.06.89 |
Yes |
As per 19.06.89 |
| 27.07.89
#89/243
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
D C Masters, GMCB
21.07.89
|
|
Pazadore |
(1) Note the updated position
since last report, and (2) transfer $60.0M in limits from Project Underwriting Facility to
Bridging Facility bringing Bridging Facility to $250.0M and extend term to 31.10.89. |
Yes |
Demolition completed 24.06.89.
Site shutdown for two weeks to ensure orderly switch of contractors. Excavation commenced
10.07.89. REMM responded to consultant and Bank issues. Legal department indicates Bank
may have obligation to fund up to $500.0M to REMM. Other legal obligations include making
available to Pazadore sufficient funds to complete the project. Compensation and Fitout
Agreements negotiated with Myer. March 1991 considered the new completion date.
Proposal advises that revised cost estimates will now necessitate
total repackage of financing structure. Six primary risks to Project identified. Internal
Project Management team and LCC Sub-Committee formed to manage the Project.
|
| 21.08.89
#61A/89
|
LCC comprising of
K S Matthews, CGMGRM
S G Paddison, CGMAB
D C Masters, GMCB
P F Mullins, CMCB
|
P F Mullins
21.08.89
|
P F Mullins, CMCB |
Pazadore |
Note current status of Project
and revise funding structure to total of $580.0M in facilities of which $220.0M is to be
provided by the Bank. |
Recommended to Bank Board for
approval. |
Details Bank exposure, REMM
concessions to Bank. Some concern by National Australia Bank and Adelaide Club re:
excavation. Internal Project Review Committee of Bank meeting weekly. Revised funding
structure to include Bank having a profit share on a sliding scale dependent on REMM's
performance. SGIC to be released from Put Option commitment. Float no longer allowed to
REMM on subcontractor payments. |
| 24.08.89
#89/283
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
T M Clark
|
P F Mullins, CMCB
21.08.89
|
|
Pazadore |
As per 21.08.89 |
Yes |
As per 21.08.89. |
| 21.09.89
#71/89
|
LCC comprising of:
K S Matthews, CGMGRM
S G Paddison, CGMAB
D C Masters, GMCB
R L Wright, CMIB
|
A B Turnbull, MCB
M R Kluge, MPF
21.09.89
|
P F Mullins, CMCB |
Pazadore |
Recommend to Bank Board to
approve:
(1) Facilities totalling $293.1M, reducing
to $250.0M on 23.10.89 and then to $220.0M after syndication, (2) Contingent Limit of
$20.0M to accommodate interest rate risk management.
|
Yes |
Two funding alternatives
introduced in August are finalised into one. REMM to be provided with sufficient funds and
additional two and a half years to complete development and sell, refinance or obtain
additional equity. If not achieved by 31.03.92, Bank has right to exercise Call Option
giving Bank total ownership.
New package comprised of
first ranking syndicated facility of $360.0M with no Bank participation and second ranking
facility of $220.0M provided by the Bank.
Security detailed by facility. Bank improves their position
and control over the Project.
Syndication information to be sent to select potential
participants on 28.09.89. Formal presentation to be held on 05.10.89.
Two leases for specialty shops now signed. National
Australia Bank
approves excavation. Adelaide Club approval in process.
|
| 28.09.89
#89/297
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
21.09.89
|
|
Pazadore |
As per 21.09.89. |
Yes |
As per 21.09.89. |
| 23.10.89
#79A/89
|
LCC comprising of
K S Matthews, CGMGRM
T L Mallett, CGMIB
D C Masters, GMCB
|
P F Mullins, CMCB
20.10.89
|
|
Pazadore |
Update for Noting. Drawings under
current Bridging Facility to 19.10.89 totalled $210.0M with an approved limit of $250.0M. |
Noted |
Terms and conditions for funding
structure sent to 22 potential participants on 02.10.89. Minimum participation level set
at $25.0M. Favourable interest expressed up to $600.0M. Firm commitment deadline 09.11.89.
October 1990 completion date set by REMM. Pazadore paid fee to SGIC and the Bank
terminating Put Option commitment. Centrepoint facility to be repaid as property now sold
to SGIC. |
| 26.10.89
#89/336
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
20.10.89
|
|
Pazadore |
As per 23.10.89 |
Noted |
As per 23.10.89 |
| 17.11.89
#86A/89
|
LCC comprising of
K S Matthews, CGMGRM
S G Paddison, CGMAB
D C Masters, GMCB
P F Mullins, CMCB
|
A B Turnbull, MCB
(undated)
|
P F Mullins, CMCB |
Pazadore |
(1) Increase Bridging Facility
Limit from $250.0M to $270.0M, (2) Extend term of Bridging Facility to 22.12.89. |
Yes |
Received repayment of funds
advanced to Centrepoint to reduce facility to $250.0M. Current increase requested to
provide additional funds if needed during syndication. Syndication commitment deadline
extended three weeks. The Bank profit share starts at 50/50. On-site work progressing
well. Leasing campaign to begin in earnest in 1990. |
| 23.11.89
#89/365
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins (undated) |
P F Mullins, CMCB |
Pazadore |
As per 17.11.89 |
Yes |
As per 17.11.89. Also notes Bank
has improved its position and control over Project. |
| 15.12.89
#95A/89
|
LCC comprising of
K S Matthews, CGMGRM
S G Paddison, CGMAB
T L Mallett, CGMIB
P F Mullins, CMCB
|
A B Turnbull, Manager Asset Sales
and Syndications
14.12.89
|
P F Mullins, CMCB |
Pazadore |
(1) Increase in Bridging Facility
from $270.0M to $290.0M, (2) Extend term of Bridging Facility from 22.12.89 to 30.01.89. |
Yes |
Syndication process slower than
anticipated and requiring extension, although $133.0M firm commitments received to date.
Bank received additional security of Kingsmead residential project (first mortgage) in
Adelaide and on the Cat & Fiddle and Plaza arcades (second mortgage) in Hobart.
Colliers confirms valuation of Myer Centre as not less than $557.0M on completion. Bank in
process of obtaining rights as a joint venture partner over Project considering Bank's
profit sharing role in transaction.
REMM not fully
satisfied with Allco Newsteel Pty Ltd ("Allco") (major subcontractor)
performance. Myer to receive Compensation Agreement payment of $8.3M for first year.
Settlement reached with Adelaide Club. REMM hires Peter Kernaghan (Consultant) to lead an
equity raising program for $300.0M.
|
| 21.12.89
#89/400
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
T M Clark
|
P F Mullins, CMCB
15.12.89
|
|
Pazadore |
As per 15.12.89 |
Yes |
As per 15.12.89 |
| 18.01.90
#3A/90
|
LCC comprising of
K S Matthews, CGMGRM
T L Mallett, CGMIB
D C Masters, GMCB
P F Mullins, CMCB
|
A B Turnbull, Manager Asset Sales
and Syndications
16.01.90
|
P F Mullins, CMCB |
Pazadore |
(1) Increase in Bridging Facility
from $290.0M to $300.0M, (2) Extend term of Bridging Facility to 28.02.90, (3) Increase in
Bank's approved level of post-syndication direct exposure from $220.0M to $290.0M via
provision of $70.0M in the $360.0M first rank syndicate. |
Recommended to Bank Board of
Directors for approval. |
At 16.01.90, commitments by
syndicate totalled $290.0M while Bank seeks $360.0M; thus, proposed that the Bank provide
the other $70.0M. In the interim, it is proposed that the Bank extend the Bridging
Facility and term to keep the Project going. Details the Bank's involvement in the First
Ranking Syndicate and the overall exposure. Syndication documentation almost complete -
settlement scheduled for 15.02.90.. |
| 25.01.90
#90/12
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Seracy
T M Clark
|
P F Mullins, CMCB
18.01.90
|
|
Pazadore |
As per 18.01.90 |
Yes |
As per 18.01.90. |
| 22.02.90
#90/45
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
09.02.90
|
|
Pazadore |
Update for noting |
Noted |
Current outstandings on Bridging
Facility total $278.0M. On 01.02.90, syndication documents given to participants and
meeting held on 05.02.90. Participants to respond by 14.02.90. Execution of documents to
take place in Adelaide on 26.02.90 and 27.02.90. Project completion date set for 09.90.
Leasing progress is slow but meetings are in progress with numerous prospective tenants. |
| 22.03.90
#90/70
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
T M Clark
|
P F Mullins, CMCB
14.03.90
|
|
Pazadore |
Update for noting. |
Noted |
Final meeting with syndicate to
take place on 15.03.90. Documentation to be signed on 19 & 20.03.90. As a result,
Bridging Facility extended to 28.03.90. First drawdown under syndicated facility scheduled
for 28.03.90 at which time Bank overall exposure reduced to $180.0M. Some labour problems
on-site. Leasing campaign gaining momentum. |
| 19.04.90
#29/90
|
LCC comprising of:
J B Macky, CGMGMS
V R Pfeiffer, CMPBL
R L Wright, CMIB
P F Mullins, CBCB
|
A B Turnbull, Manager Asset Sales
and Syndications
18.04.90
|
J V Henderson, SMPPF |
Pazadore |
Increase Bridging Facility from
$300.0M to $335.0M and extend term to 31.05.90. |
Yes |
Loan and security documentation
for the syndication was completed on 20.03.90. First drawdown on syndication facility
delayed pending resolution of dispute between REMM and Allco Newsteel Pty Ltd which caused
on-site work to halt. This dispute forced REMM to renegotiate the terms of each of Allco's
subcontracts. Bridging Facility outstandings total approximately $309.0M although approved
limit is only $300.0M. Extension requested to allow for further delays, although work is
expected to recommence on 24.04.90. Syndicate drawdown cannot occur until costing and
programming details are presented. The Group Managing Director and the Chief General
Manager, Australian Banking are being updated on an ongoing basis. Leasing interest
remains strong. |
| 26.04.90
#90/97
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
J V Henderson, SMPPF
19.04.90
P F Mullins, CMCB
|
|
Pazadore |
As per 19.04.90 |
Yes |
As per 19.04.90. |
| 24.05.90
#90/141
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB
17.05.90
|
|
Pazadore |
Update for noting |
Noted |
S A Supreme Court granted a
Mareva injunction against Allco preventing it from disposing of assets or otherwise
reducing net worth of the Group. Full resumption of work to commence on 22.05.90. Drawdown
on syndicated facility not expected until June 1990. |
| 28.06.90
#90/176
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
R E Hartley
W F Nankivell
R P Searcy
A G Summers
|
J V Henderson, SMPPF
20.06.90
|
D C Masters, GMCB |
Pazadore |
Update for noting |
Noted |
Repayment of Bridging Facility
and first syndicate drawdown occurred on 18.06.90. Total Bank advances and limits are
$201.1M and $290.0M, respectively. High Court dismissed Allco's second appeal against the
injunction granted previously. Allco in arbitration procedures under the sub-contract in
order to pursue claims for damages against REMM. REMM has control of all materials and has
work continuing day and night. REMM paid Allco sub-contractors amounts owed to them by
Allco in order to obtain their co-operation. REMM will be paid back as soon as Allco pays
those contractors. Leasing interest remains high, however retailers expect subsidy from
developer in light of current economic conditions. |
| 26.07.90
#90/214
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
J V Henderson, SMPPF
19.06.90
P F Mullins, CMCB
|
|
Pazadore |
Update for noting |
Noted |
Second syndicate drawdown
completed. Total Bank drawings $204.5M. Deutsche Bank Australia considered taking $30.0M
of the Bank's $70.0M syndicate position. REMM and Allco continue to pursue various matters
in the courts of South Australia and Victoria. On-site progress is continuing and a
completion date of November/December 1990 is expected. Only 17 leases signed to date, but
50 are in negotiation phase. |
| 23.08.90
#90/256
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
R E Hartley
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
P F Mullins, CMCB 15.08.90 |
|
Pazadore |
Update for noting |
Noted |
Total Bank drawings of $214.7M.
Facility C is overdrawn by $0.6M temporarily to allow payment to Allco sub-contractors,
which is expected to be paid back by December 1990. Total draws, however, remain within
overall approved limits. Deutsche Bank Australia retracted their $30.0M proposed
commitment because of the current economy. REMM Group financial position continue to be
monitored by Corporate Banking. Same concern over potential cash flow problems resulting
from other projects in Queensland. On-site work slow due to inclement weather. Allco legal
problems continue. |
| 27.09.90
#90/298
|
Bank Board comprising of:
D W Simmons
Mrs M V Byrne
R E Hartley
W F Nankivell
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
J V Henderson, SMPPF
20.09.90
P F Mullins, CMCB
|
|
Pazadore |
Update for noting. |
Noted |
Total Bank drawings of $217.7M
with Facility C still overdrawn by $0.6M. REMM taking steps to improve their cash flow
position and some properties to be sold including the Cat & Fiddle. On-site work
experiencing some delays due to inclement weather and need to rectify inferior workmanship
on steel columns. Allco dispute moves out of arbitration and into court. Litigation with
unions in process. A total of 57 leases have been signed out of 170. Funding proposal for
approximately $25.0M being finalised to provide for fit- out costs agreed to under head
leases signed by REMM. |
| 22.10.90
#88A/90
|
LCC comprising of:
S G Paddison, CGMAB
J B Macky, CGMGMS
J T Hazel, CGMFS
P F Mullins, CMCB
|
J V Henderson, SMPPF
18.10.90
|
P F Mullins, CMCB |
Pazadore |
Increase facilities from $290.0M
to $335.0M |
Recommended to Bank Board for
approval. |
Opening of centre deferred to
25.02.91 as REMM was not prepared to indemnify Myer against stock costs incurred should
the centre not open before the Christmas season. Total Bank funding is $246.4M out of an
approved limit of $290.0M. Increase to $335.0M to allow Bank to fully fund November 1990
drawdown and to enable REMM to order equipment and commence fitout of common areas
required to be completed before opening of the centre. To maintain good relations with
syndicate, Bank funded the October drawdown ($21.5M) in total. Syndicate will recommence
funding once cost overruns are verified and estimates revised. Forecast that an increase
of $55.0M in the Bank facility will be required to meet continued funding costs, delayed
rental receipts and accrued interest to 31.03.92 (one year after opening).
David Chandler engaged to verify cost overrun estimates. This will
take five weeks which is after the 10.11.90 drawdown date. Current facility increase
request to cover the 10.11.90 draw ($30.0M). REMM financial position deteriorating and is
jeopardised by actions taken by Bank of New Zealand (BNZ), a lender to REMM on other major
projects.
|
| 25.10.90
#90/339
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W K Nankivell
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
J V Henderson, SMPPF
22.10.90
P F Mullins, CMCB
|
|
Pazadore |
As per 22.10.90 |
Yes |
As per 22.10.90 |
| 25.10.90
#90/355
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W K Nankivell
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
S Paddison, Chief General Manager
Australian Banking |
|
|
Bank Board Sub-Committee be
re-instated to provide guidance. |
Yes |
Update Myer Centre Development. |
| 22.11.90
#90/400
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W K Nankivell
A R G Prowse
R P Searcy
A G Summers
T M Clark
|
J V Henderson, SMPPF
15.11.90
P F Mullins, CMCB
|
|
Pazadore |
Update for noting |
Noted |
Bank total drawings of $266.8M.
BNZ action against REMM may be near satisfactory conclusion. Syndicate receiving monthly
reports. On-site work delayed 12 days this past month because of inclement weather and
union unrest. Preliminary assessment by David Chandler is that the February completion is
not possible and a more probable date would be May 1991. Allco litigation continues.
Leasing market deteriorating although several leases awaiting REMM Director approval. |
| 18.12.90
#108A/90
|
LCC comprising of:
S G Paddison, DB
T L Mallett, CGMCIB
D C Masters, GMSACCB
|
J V Henderson, SMPPF
18.12.90
|
P F Mullins, CMCB |
Pazadore |
Notes present financial condition
of borrower and recommends increase in facilities from $335.0M to $398M to enable
completion of project, reducing to $396.0M on completion. |
Recommended to Bank Board for
approval |
Mr Chandler of Australian Pacific
Projects (independent cost verification consultant hired by the Bank) estimates total
building cost to completion of $323.0M with a June completion date. This means a revised
estimate construction completion cost of $684.0M and an all up funding requirement of
$744.2M. The Bank funding all-up would be $469.2M which is above prudential limits. In
order to reinstate syndicate funding, participation will continue based on original cash
flows. Any funding required over the original monthly cash flows will be covered by the
Bank. Syndicate did not participate in October, November, December draws pending outcome
of cost overrun analysis by Mr Chandler. Total Bank draws are $315.2M with a commitment of
$335.0M. Also, Beneficial Finance Corporation has $4.6M exposure to REMM. Mr Chandler is
continuing verification of cost overrun estimates. REMM financial position could
deteriorate further pending outcome of BNZ actions. On-site union unrest gains momentum.
REMM claims against Allco and their counterclaims continue. Leasing is at 68% of total
area. |
| 20.12.90
#90/438
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
W F Nankivell
R P Searcy
A G Summers
T M Clark
A R G Prowse
R E Hartley
|
J V Henderson, SMPPF
18.12.90
P F Mullins, GMNCA
|
LCC 18.12.90
S G Paddison, CGMAB
|
Pazadore |
Increase facilities from $335.0M
to $398.0M to enable completion of the Project. This is less than that recommended by the
LCC on 18.12.90. |
Yes |
As per 18.12.90. |
| 16.01.91
#3/91
|
LCC comprising of:
S G Paddison, DB
J L Mallett, CGMCIB
D C Masters, GMSACCB
R L Wright, CMPLWCIR
|
|
|
Pazadore |
Specific provisioning not
possible at this time, however potential loss between $Nil and $250.0M. |
|
|
| 24.01.91
#91/18
|
Bank Board comprising of:
D W Simmons
R D E Bakewell
Mrs M V Byrne
W F Nankivell
R P Searcy
A G Summers
A R G Prowse
R E Hartley
|
J V Henderson, SMPPF
17.01.91
T L Mallett, Chief General Manager Corporate and
International Banking
|
|
Pazadore |
Update for noting |
Noted |
Situation being monitored on day
to day basis. Bank total lending is $342.7M out of $398.0M committed. Individual facility
limits are exceeded although overall approved limits are observed. Steps taken to increase
REMM information processing locally to prevent undue reliance on their Brisbane office
should BNZ actions against REMM disrupt its operations. Bank estimates loss potential on
project to be $250.0M. Structure is 95% complete and mechanical equipment in place.
Industrial relations remain unsettled. |
| 13.03.91
#91/65
|
Bank Board comprising of:
N R Clark
R D E Bakewell
A R G Prowse
R E Hartley
M S Shanahan
|
J V Henderson, SMPPF
20.02.91
P F Mullins, GMNCA
|
|
Pazadore |
Update for noting |
Noted |
Issue of Performance Bond to
support REMM Group's obligation with respect to new construction work in Perth (bond value
is $435,271). Bank security of cash withheld from margins due to REMM. REMM needs cashflow
to continue to trade, and approval requested for provision of funds up to $2.0M if needed.
Syndicate funding resumed on 31.01.91. Industrial relations
improving. Allco litigation in process.
|
| 21.03.91
#19/91
|
Group Credit Committee comprising
of:
S G Paddison, CEO
T L Mallett, CGMCIB
P F Mullins, GMNCA
R L Wright, CMCI
|
J V Hendersen, SMPPF |
|
Pazadore
REMM Group Ltd
|
Approve a specific provision of
$185.0M and downgrade of credit risk rating to G. |
Yes |
|