dispute and default, page-2

Story of the day:

Sydney - Thursday - October 26: (RWE Australian Business News) -
Chemeq Ltd (ASX: CMQ) has received from Stark Trading and its associates
(Stark), being some of the Bond holders, a Notice of Redemption pursuant
to clause 12.2 of the Convertible Bonds Deed Poll.
In the Notice Stark has alleged an Event of Default has occurred
in that Chemeq has allegedly failed to achieve a total gross revenue
from all sources of at least $4.0 million for the financial year ending
30 June 2006 as required by clause 2.9(a) of the Deed Poll and Stark is
seeking the repayment within 10 business days of its convertible bonds,
which have a face value of $50.0 million.