BRIEFS

The corporate regulator confirmed it laid criminal charges in April against Westpoint founder Norm Carey and the company's financial controller Graeme Rundle over transactions involving the Warnbro shopping centre, south of Perth.

Norm Carey told The West Australian he had delivered 'a super return to investors' in the Warnbro shopping centre and said the Australian Securities and Investments Commission (ASIC) would be 'laughed out of court.'

The article highlights that senior Westpoint figures have been criminally charged over a property transaction. For everyday investors, such developments can signal ongoing legal and investigatory activity related to past deals and may affect any recovery efforts or related companies; the story primarily reports the charges and public comments from the founder.

AJ Lucas is expected to ask shareholders for a substantial equity raising because other options, including asset sales, fell through. The company needs to resuscitate its balance sheet as it faces a working capital deficit and potentially maturing loans.

Shares in AJ Lucas were suspended for five weeks while the company sought a way to plug a working capital deficit and find a solution to its near-term funding pressures.

The company faces a working capital deficit of about $124 million and has roughly $90 million in loans that may fall due within the year, prompting the planned equity raising and the trading suspension.

The equity raising is understood to be in the vicinity of $100 million to help address the company's balance-sheet shortfall.

The article reported that US Treasury Secretary Timothy Geithner has signalled to White House officials he is considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit.