Aug 11, 2008

RAMS board pulled by Kinghorn on loan repayment

The three directors who approved John Kinghorn’s early loan repayment have extensive business dealings with the RAMS founder, writes Adam Schwab.

RAMS holds the dubious honour of the being the worst performed significant float in the past decade. After hitting the boards at $2.50, the company imploded only weeks later as the credit crunch hit. After selling its origination business to Westpac, RAMS continued to slump, currently trading at 12 cents. None of this has caused too much financial stress upon founder and Chairman John Kinghorn who reaped $650 million from the IPO, keeping only 20% of the listed RAMS.

Despite being flush with cash, Kinghorn apparently felt the need to call in a loan made to the stricken mortgage originator two years early, with the Financial Review’s entertaining Prince column reporting on Saturday that:

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One thought on “RAMS board pulled by Kinghorn on loan repayment

  1. Connor Moran

    Amazing stuff. Perhaps the $650m doesn’t exist any more and he needs the $28m for 20-to-1 at the track (or on the ASX more likely).

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