Tricom struggles with fund demand
The future of troubled broking firm Tricom is in doubt as it has been forced to seek a buyer. With some of the company’s largest margin loan customers refinancing with other firms such as CommSec and BT, Tricom must settle the accounts by paying out cash or stock. Investors are concerned that they are getting close to the 10 days that will trigger margin calls on the loans that now have no collateral against them, yet Tricom has not said how they will be settled. Chief executive at the ASX, Robert Elstone, has said that he has “no reason to believe” that Tricom cannot meet its solvency requirements while the company has said that they are managing a progressive sell down of a large loan book and that this will take some time. Tricom is understood to be in discussions with potential buyers including Bell Securities and asset manager State Street.
Source: The Australian