blindsided, page-21

Long story short, it's called a bluff. They are trying to bully you.

What you also have to understand is that there is ranking of debt. Ie, banks and such and then the riff, raff note holders etc. SGH may have bought some paper cheaply from note holders, I think I read that they bought some at .85c in the dollar, that is purely to buy votes at the administrators meeting, but the senior debt is still out there and that will be the telling issue. Do they want to be slimed with this move or will they want an orderly disposal of assets and give all creditors 100c in the dollar.

Administrators can be appointed by the company, they can even be "friendly" administrators, but once appointed even if it is voluntary, they have a set of rules and procedures set out by the Corporations Act and watched over by the courts.

Once an administrator is appointed all powers of the board and management are passed onto the administrator, he runs the show and the cheque book.

Heaven help any administrator that goes outside the law.

All bets are off if DV works for the administrator though.