cats ann is a disgrace. we must take action , page-11

Guys, in the Australian today, we have been given a nice mention in the final few paragraphs :-)

http://www.theaustralian.com.au/business/property/centro-on-track-to-deliver-64c-stapled-security/story-fn9656lz-1226373014804


Seanmorr, the settlement has not been finalised yet. It is being heard on the 19th of June. This also means the CATS issue is yet to be given the all clear.


As far as I am concerned, they have 21 more days to rectify the situation.

I am sorry but how can CNP secured creditors be issued CATS over CNP class action liability?

I calculated the maximum amount CNP claimants should receive is as follows:

$10M left in CNP/CNPR kitty

$19M insurance proceeds (39M total insurance proceeds split between CNP and CER)

$33.5M PWC proceeds ($67M total payout split between CNP and CER)

Total: $62.5M

Assuming the $200M settlement is to be split evenly between CER and CNP claimants, then CNP are being paid $100M.

This means that CRF/CER has over compensated CNP claimants by $37.5M.

This also means CNP secured creditors have been over compensated with CATS to the tune of $38.5M.

What if CNP/CNPR does not have any recourse to insurance proceeds? What if it was because of CER/CRFs insurance policy, which allowed it a claim in the amount of $38M?

This means that CNP claimants should only have received ($62.5M less $19M) $43.5M.

This means that the $85M of CATS issued to secured creditors should be $56.5M less ($100M - $43.5M).

It also means that any payment more than $43.5M in this example means CER/CRF has subsidised the class action payout.

It would make just as much sense for former CER holders to be provided with CATS in this instance….

There are many unresolved issues and we must do what we can to ensure we get the right result.

We were a driving force to get the recapitalisation proposal amended so we know we can do it

Cheers