Trust Co seeks receivers to oversee Angas Securities’ repayment schedule

Financial services provider The Trust Co is against debenture company Angas ­Securities’ move to draw out repayments to investors and has called for receivers to oversee attempts to return the $135 million owed.

Angas will ask investors at a meeting in Adelaide to wait two years for returning their money, but Trust Co, owned by wealth manager Perpetual, has told investors it expected losses.

It may call on the Federal Court for a receiver to be called in depending on support for Angas, The Australian reported.

Trust Co wrote to its more than 2,000 investors that the corporate regulator and Trust had “carefully considered” the Angas plan and raised concerns about the adequacy of the document, which had not been “fully addressed”.

The trustee said there was a risk that debenture holders may not receive any “significant” payments from Angas until the end of June 2019. It said investors should brace for losses, writing that “Angas will not return a ­surplus and will in fact be unable to pay 100c in the dollar”.

Angas has paid back $15 million against the $145 million promised this time last year. The trustee said valuations relied upon by Angas were out of date, “in some cases by many years”.

Trust Co raised concerns about excessive spending, saying Angas had spent $16.2 million running its business in the last two years and had forecast spending $12.1 million over the next two years.