Westpac deal crucial to RAMS
Home loan provider RAMS is continuing to work its way through the sub-prime fall-out with a stark announcement to the Australian Stock Exchange (ASX) today revealing the importance of Westpac’s proposal to purchase the RAMS origination business and brand.
Discussing the funding of new business, the company said that it continued to settle approved loans and to approve new loans, but that all warehouse facilities, including a $1 billion increase in facilities provided by its relationship banks in August, had been fully drawn.
It said that RAMS started settling loans into the warehouse facility provided by Westpac under the Westpac proposal but that funding under the Westpac proposal would cease if shareholder approval of the Westpac proposal was not obtained at the general meeting.
“In the absence of the Westpac warehouse facility, RAMS and its lead managers have been unable to locate alternative sources of new funds in sufficient volumes to meet the ongoing needs of the business,” RAMS told the ASX.
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Mike Taylor
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