749 replies to this topic

[spanky123]

so why did the 150 default? I assume because just not paying was a superior option to paying (and losing all that money) and keeping on with gustavsons company. Reg in finance says it’s better to just not pay that and pull our arrangement. X 150.

 

Could be that their own customers didn't pay them, they didn't have cash to cover the cash call, and in some cases it sounds like a few are trying to use the bankruptcy to avoid paying anything.

[Mike K.]

We had one of these hedge reps talk to us once, but their buy-in was well, well north of what we could provide monthly. So we never went with it.

Glad we didn’t, because to save a few bucks or pad an account by a few points also came with a risk of the whole thing going against you.

[spanky123]

We had one of these hedge reps talk to us once, but their buy-in was well, well north of what we could provide monthly. So we never went with it.

Glad we didn’t, because to save a few bucks or pad an account by a few points also came with a risk of the whole thing going against you.

 

What these companies do is sell both sides of the trade so they are protected. It doesn't work out though if your customers default!

[Rob Randall]

I don't see other exchange brokers going bankrupt right now. I'm sure some are struggling but only the one that advertised itself as superior in terms of safety actually went under.

 

They should have had a disclaimer on their website: "Your money is safe with us, unless, of course, we have yet another economic downturn like we had in 2008 and 2003 and 1989 etc. and when that happens every penny you give us will instantly and permanently disappear!"

[Mike K.]

Oi vey...

 

Large corporations (with a dedicated, in-house treasury department) have used currency hedging to protect from losses for decades. This service is now readily available to smaller corporations too, without the need for them to hire, manage, and fund an in-house treasury desk. But even so, many business owners avoid currency hedging like the plague. Why is that?

 

 

- https://www.encorefx...rrency-hedging/

[spanky123]

I don't see other exchange brokers going bankrupt right now. I'm sure some are struggling but only the one that advertised itself as superior in terms of safety actually went under.

 

They should have had a disclaimer on their website: "Your money is safe with us, unless, of course, we have yet another economic downturn like we had in 2008 and 2003 and 1989 etc. and when that happens every penny you give us will instantly and permanently disappear!"

 

People that had money hedged with EncoreFX are secure. That money was in trust accounts. Those who had 'in the money' accounts may lose the profit and creditors will likely lose out. 

 

Your argument is sort of like saying that airlines, hotels, and restaurants should have anticipated the pandemic and protected themselves.

Edited by spanky123, 07 May 2020 - 10:35 AM.

[VIResident]

People that had money hedged with EncoreFX are secure. That money was in trust accounts. Those who had 'in the money' accounts may lose the profit and creditors will likely lose out. 

 

Your argument is sort of like saying that airlines, hotels, and restaurants should have anticipated the pandemic and protected themselves.

 

Come come now, you are not seriously comparing the business of airlines, hotels and restaurants to the business of topic? Tsk

[Mike K.]

Ticket Rocket has gone bankrupt. It opened in 2015 as a Victoria-based ticketing agency. All tickets purchased through the platform are now gone, as are stored revenues from event organizers that had hoped to bank them for future events.

[spanky123]

^ Lots more to this story. 

 

Ticket Rocket’s owner and boss Matthew Davey was according to news reports out of New Zealand has been under intense scrutiny and was the subject of a police investigation in that nation due to not providing refunds for two events - Hurricanes Sports Rugby and the Warbirds Over Wanaka.

Consumer New Zealand has advised ticket holders not yet receiving promised refunds within 60 days to seek relief through their banks.

Ticket Rocket's holding company, Fortress Information Systems, lost a court battle and had $676,000 NZD seized to cover an outstanding event from February.

Ticket Rocket boss and Victoria native Matthew Davey is no longer living in New Zealand but has returned to Canada.

It is unknown at this time if Ticket Rocket Canada is financially directly tied to Ticket Rocket New Zealand.

 

Ticket Rocket Welches On Refund Date Promise — MJ Independent

[Victoria Watcher]

i wonder how much stored revenue that had.  if it was millions might be a great time to take the money and go "bankrupt".

 

,

[Mike K.]

Sounds like quite a few events in town convinced people to hold off asking for refunds and instead bank their tickets for future events.

[Victoria Watcher]

Sounds like quite a few events in town convinced people to hold off asking for refunds and instead bank their tickets for future events.

 

which ones?  i'm reading about "wing fest" but do not know of others.  certainyl with COVID there has been an all-time high of bankable money over the last 10 months.

[Mike K.]

Comic Con is another. There'll be quite a few emerging now that the news is spreading.

[VIResident]

Huh?  August 2020 News!

 

Ticket Rocket company debts more than $8m, receivers say

https://www.odt.co.n...m-receivers-say

 

The company is better known in New Zealand as Ticket Rocket or Ticket Direct and was put into receivership at the end of August.

The receivers say they have been ignored by Ticket Rocket’s director Matthew Davey since their initial correspondence with him.

"... the director has not responded to our recent requests for information, which has been disruptive to the receivership process," the report said.

Matthew Davey is understood to have returned to Canada.

Edited by VIResident, 12 February 2021 - 11:49 AM.

[Barrrister]

This is rather tragic for a lot of people, Not sure how these sales centers work but would not the venue get the money as soon as the ticket is sold with Ticket Rocket just keeping their commission for the sale?

[Victoria Watcher]

didn't the company fail back in the summer though?

[Victoria Watcher]

This is rather tragic for a lot of people, Not sure how these sales centers work but would not the venue get the money as soon as the ticket is sold with Ticket Rocket just keeping their commission for the sale?

 

the problem there is what happens when an event/venue cancels and keeps all the money?  the ticket company looks bad then.

Edited by Victoria Watcher, 12 February 2021 - 11:51 AM.

[spanky123]

Sounds like quite a few events in town convinced people to hold off asking for refunds and instead bank their tickets for future events.

 

If Ticket Rocket had released funds to the events then the holder and event should both be fine. If Ticket Rocket had held funds then the event could be in trouble and face the prospect of deciding whether to honour tickets they hadn't been paid for. The holder always has the option of disputing the charge if they paid by credit card if the event doesn't honour the ticket.

[Mike K.]

didn't the company fail back in the summer though?

 

Indeed, but unless I'm mistaken this was not picked up in local media. Or was it? Hard to say, but usually we pick up on this sort of thing right away.

[Mike K.]

Can someone speak to what’s going on at DXC, which is located at the tech park? I saw a post that they’re reducing staffing levels in Victoria.