Marchmont Securities Trust

WARNING: Unsolicited Offer for Strategic Finance Debentures

Debenture-holders in Strategic Finance Limited should be wary of an offer by Marchmont Securities Trust to buy their debentures for 10c in the dollar.

Investors should be cautious of any unsolicited offer to purchase their investments, especially where the offer is well below face value.

The Securities Commission urges investors to seek professional advice before making any decision to accept the offer.

When a finance company is in moratorium it is very difficult to accurately assess the value of the company's debentures. The debentures are not trading on any organised market, so there is no market price against which investors can assess the offer.

"Offers to buy securities for a fraction of their face value can be opportunistic and play on doubts about the value of the debentures" said Commission Chairman Jane Diplock. "The fact that someone is willing to pay 10c in the dollar does not mean that this is the true value of the securities. We urge investors to seek advice from a reputable financial adviser."

Under securities legislation it is not illegal to offer to buy securities below their face value. Any offer to buy securities from investors must not be misleading or deceptive.