Northern Rock - "We remain a sound company and continue to be a safe place for your savings." Get Carter crowd not DunRobbin yet
When Northern Wreck Directors published their fraudulent accounts for the 6 months to June 30th on July 26th they also declared an interim dividend of 14.2 pence per share an increase on 2006 of 30.3% payable to shareholders on the register September 28th 2007. At February 2007 the Directors held 387,000 shares (Accts Y/ E 200) this will involve a total distribution of £59 Mn. on payment date October 26th 2007.
It is worth remembering that on August 9th those same Directors who had declared a whopping 30% dividend increase were baging on the doors of the Bank of England asking for a sub.
The Financial Times reports that the Directors had taken legal advice (paid for by the shareholders) the advice was presumably from bue chip / top drawer City solicitors Freshfields who were recently appointed.
According to the FT, if Northern Rock decides not to pay the dividend, it is likely to announce the decision before Sept 28. With the current share price 3% on the day (2.30pm) at 188p that represents a very short term yield of 7.5% although the shares will (if they haven't been suspended) drop like a stone when they go ex-Divvy.
The City botttom feeders are out in force, now it is apparent that the major banks have lost interest Cerberus, Ripplewood and Lone Star are frequntly mentioned. Chris Flowers who was capo di capo of Goldman Sachs’s now runs JC Flowers - financial restructuring and distressed sellers of complex assets and is said to be able to rustle up the reddies if needed.
A long, long time ago Chris regales his fellow snooker partners in 202 he masterminded Japanese Long-Term Credit Bank, (now Shinsei Bank,) rescue with Timmy Collins’s Ripplewood fund.
Failing that Northern Wreck will be smashed up into bits.
Failing that the dumb, obdurate, Geordie fraudsters will go into "run off",wind down operations, particularly in its mortgage book – egged on no doubt by the dwindling band of grateful shareholders.. and the Directors limp off to enjoy their modest pensions.
Consider the bare faced cheek and gall of CEO Adam Applegarth who says on the company website - even today .....
"We remain a sound company and continue to be a safe place for your savings."
Readers who have got this far , might wish to enlighten us what themeaning of the Mission Statement appearing on page 1 of the Northern Rock 2007 Accounts means. Winers will enjoy a candlelit dinner with Adam Applegath.... serenaded by Geordie wit and raconteur Matt Ridley Chairman. £315,000 p. annum. who will sing "Nice work if you can get it".