The managing director of data storage operator NextDC Limited (ASX: NXT), Craig Scroggie has criticized Bankwest for "aggressive enforcement" and "fee-grabbing behavior” after a default notice of $29 million was issued by the bank to a property trust the digital powerhouse has taken over.
After criticizing Bankwest, Mr. Scroggie has become more determined towards bank and upped the ante by calling Deloitte request for investigating the property trust’s banking records, any chances of misappropriation of funds as well as its dealing with Bankwest.
NextDC has also pitched in itself to repay and replace the debt of $29 million through its short-term bridging loan to the Asia Pacific Data Centre Group who is the owner of three data facilities. Commonwealth Bank of Australia also owned a default notice to the property trust by Bankwest on October 16 with pay-back period of 14-day which was triggered by change-of-control provisions. As per Mr. Scroggie, the extraordinary action of Bankwest by putting APDC in default based on the triggering of a change of control appears extraordinarily poor, fee-grabbing, bottom-feeding behavior. He also stated that there is no such bank who based on technical change of control condition, launches aggressive and overhanded enforcement default. And also disclose it publicly in the market even though the credit is delinquent. He also states that the amount of debt which the company had to repay Bankwest was only $29 million. Also, for this amount the company has already mortgaged an asset worth $261 million.
An ASX statement was being issued by the property trust stating that Bankwest is unwilling to decline its withdrawal of default notice. Mr. Scroggie also stated that takeover of APDC has also made certain representation clear made to NextDC during its due diligence that lacked accuracy. After this NextDC has appointed Deloitte to conduct a forensic investigation in regard to the banking and the email records, the misappropriation of funds, unpleasant conduct and its dealings with Bankwest. The company through this investigation wants to notify the respective authorities which also includes ASIC and APRA if there come some remarkable findings.
At present Bankwest has declined to make any comment in regard to its action related to $29 million facility. Bankwest has declined to comment on the record about its actions in regard to the $29 million facility. Since the inception of the company, the performance of the company remained positive. The performance remained 297.33%. The one year and 5 years performance data of the company is 19.54% and 184.19%. The YTD performance of the company is 3.52%.
The shares of the company are currently trading at A$3.265. The market capitalization of the company is A$2.13 billion and has PE ratio of 274.64x. Also, as per the chart, the moving average convergence and divergence line (MACD line) of the company has jut cut the signal line from the below and it is tending to move in the upward direction. This indicates that there is a chance that price may go bullish.
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