CBD
With his apparently endless supply of both money and luxury filming locations, Crown magnate James Packer would have to be Hollywood's idea of a dream financial backer.
Slim Jim first entered movieland about a decade ago, hanging about the set of mate and Xenuologist Tom Cruise's schlockbuster The Last Samurai and reportedly even wangling an uncredited cameo.
In 2008 he got out of Hollywood, flogging off a 25 per cent stake in studio New Regency that had been built up by dad Kerry.
Now he is back, strictly offscreen, making what a spokesman called a "small private investment" in producer and director Brett Ratner's new company RatPac Entertainment.
Ratner directed music videos for artists including Madonna and Mariah Carey before becoming the creative mastermind of filmic masterpieces such as the Rush Hour series, Red Dragon and the forthcoming Eddie Murphy vehicle Hong Kong Phooey. However, CBD hopes RatPac pumps out more films along the lines of 2005's Santa's Slay, on which Ratner was a producer. In it, Santa is a demon who only hands out toys to kiddies because he lost a bet with an angel. With the curse lifted, Father Christmas, naturally enough, goes on a killing rampage.
Golden days
Ah, those fabulous, dancing days before the global financial crisis came along and stopped the music. Millionaire John Kinghorn was in full reminiscing mode at a corruption hearing in Sydney on Wednesday, harking back to the heady times when he floated home loan business RAMS on the ASX.
Kinghorn spent a fairly torrid day giving evidence before the NSW Independent Commission Against Corruption, which is investigating an allegedly dodgy coal play involving state ALP powerbroker Eddie Obeid.
Questioning turned to how it was that Kinghorn and other directors of Cascade Coal sold $60 million worth of shares to Coal and Minerals Group, a company allegedly used to disguise an exit payment to Obeid, for about $70.
Kinghorn told ICAC it was something he'd seen before. "When I floated RAMS home loans, right, it had 2 million shares and we ended up splitting those into about 1¢ each and we had umpteen million and that was then sold on the Australian Stock Exchange, so it's exactly the same," he said.
"Different numbers but the same, exactly the same technique."
Counsel assisting the inquiry: "Are you saying in RAMS there were very large value parcel of shares sold for peanuts?"
Kinghorn: "No, sir, I didn't sell my shares for peanuts, I can assure you."
Indeed he didn't, although those who bought in had a somewhat less happy experience.
RAMS listed on the stock exchange in late July, 2007, after raising $695 million from investors on the back of a prospectus promising the company had a "strong financial outlook".
Entirely reasonably, about $510 million went to Kinghorn.
Just a couple of weeks later global credit markets froze stiff, leaving RAMS unable to roll over $6.17 billion in debt funding.
After just two months as an ASX-listed company, RAMS announced it was selling its name and business to Westpac for up to $140 million.
Since then the company, rebranded RHG, has done tolerably well out of servicing its existing loan book.
It even provided gainful employment for one of Kinghorn's mates, David Coe, the head of another GFC-era flop, Allco, who was a director until November 2010.
Despite these virtues, it has a market cap of about $137 million, sadly reduced from the $884 million it was worth at the time of the float.
Pay claim
Media minnow Motopia has seen off major shareholder Wendy Syme's attack on its board - for the moment. However, a separate stoush between company and owner is rolling on.
In addition to being unhappy with the way Motopia is being run, Syme also reckons that it owes her money.
Syme became a big shareholder in Motopia in 2009 after she sold it her marketing business, cBox, in return for company stock.
She bought the business back for $1 in 2011.
In a statement of claim filed with the Victorian County Court, she alleges the balance sheet and financial ledger she was provided with when she reclaimed control of the company were wrong to the tune of more than $500,000.
"According to the balance sheet, the inter-company loans between cBox and Motopia stood at nil, but, in fact, Motopia owed cBox $73,253.44," the statement of claim alleges.
"Motopia improperly treated payments of $301,620.80 from cBox as distributions of profit, and omitted from the general ledger and balance sheet accounts payable of $211,459.35."
The statement of claim was filed in October. Motopia told the market about the lawsuit on November 30. It denies the allegations.
Expert advice
Is John Hewson the business equivalent of cooch grass? Both keep popping up everywhere.
The latest sighting of Dr John is at unlisted mining explorer Larus Energy, where the corporate Mr Fix-It has agreed to join the board as a non-executive director.
Larus, which may or may not be planning to float, holds rights to explore for petroleum south-east of Papua New Guinea's capital, Port Moresby. Apparently one of Hewson's many hats is as something of an expert on PNG politics.
Got a tip?
bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
The article says James Packer made a "small private investment" in Brett Ratner's new production company, RatPac Entertainment. For everyday investors, the main takeaway is that high‑profile private investments signal interest in the entertainment sector but typically have limited direct impact on public markets unless the investor’s public companies are involved or the project is taken public.
RatPac Entertainment is a new private production company founded by film producer and director Brett Ratner, who has a track record directing and producing mainstream movies. For investors, Ratner’s industry experience suggests potential for commercial film projects, but because RatPac is a private company the news is more relevant to private‑market sentiment and media industry watchers than to most ASX investors.
John Kinghorn floated RAMS home loans on the ASX in July 2007, raising about $695 million; around $510 million went to Kinghorn. Shortly after the global credit freeze, RAMS couldn’t roll over about $6.17 billion in debt and sold its name and business to Westpac for up to $140 million. The episode is a reminder of how timing, leverage and market liquidity can dramatically affect returns for public investors.
After the sale to Westpac and subsequent rebranding to RHG, the company has been servicing its existing loan book but its market capitalisation is about $137 million—well down from roughly $884 million at the time of the float. That decline highlights risks tied to business models reliant on wholesale funding and the potential for rapid valuation deterioration during credit shocks.
The NSW Independent Commission Against Corruption (ICAC) was investigating an allegedly questionable coal deal involving state powerbroker Eddie Obeid and Cascade Coal directors. The article reports testimony about a $60 million share sale to Coal and Minerals Group that is alleged to have disguised an exit payment. Investors should be alert to governance and related‑party transactions, as they can materially affect shareholder value and legal exposure.
Wendy Syme, a major Motopia shareholder and former owner of its marketing business cBox, filed a statement of claim alleging more than $500,000 in errors on Motopia’s balance sheet and ledger—claims the company denies. For small investors, shareholder disputes and alleged accounting irregularities can signal governance problems and increase investment risk until resolved.
Dr John Hewson, described in the article as a corporate "fixer", agreed to join the board of unlisted mining explorer Larus Energy as a non‑executive director. Larus holds exploration rights for petroleum near Port Moresby, PNG. For prospective investors, experienced board appointments can be a positive governance signal—especially for companies considering a future listing.
Yes. The article highlights recurring themes: private celebrity investments often won’t move public markets; high leverage and reliance on wholesale funding (as with RAMS) pose big risks in credit stress; governance, related‑party deals and accounting disputes (e.g., ICAC matters, the Motopia claim) can materially affect shareholder value. Everyday investors should prioritise due diligence on funding models, board quality and transparency.
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