cavastowe receivable

Here is a complete summary of everything holders should know regarding the Cavastowe Receivable- directly from the 2006 Annual Report note 10.

On 28 June 2002 Strathfield Investments Pty Ltd (a subsidiary of Strathfield Group Ltd) and Strathfield Group Ltd sold assets in the amount of $7,756,802 to Cavastowe Pty Ltd (“Cavastowe”), a company controlled by Mr Andrew Kelly (director – resigned 3 November 2005). Final approvals of this transaction were completed on 21 January 2003 when the assets were placed into XTA Investments Pty Ltd. A non interest bearing loan was given from Strathfield Group Ltd to XTA Investments Pty Limited (“XTA Investments”) to assist them in the purchase of these assets (“Cavastowe Receivable”). The loan was guaranteed by Cavastowe Pty Ltd and Andrew Kelly and was payable by 20 January 2006.

A variation to the settlement of the Cavastowe Receivable proposed by Cavastowe Pty Ltd and Mr Andrew Kelly (the “Proposal”) was approved by shareholders at the company’s Annual General Meeting held in November 2005. The terms of the new settlement were as follows:

�� XTA Investments, Cavastowe and Andrew Kelly UNCONDITIONALLY AGREED TO PAY $5.5 million to the company on 17 January 2008. The net present value of this amount at 2 July 2006 is $4,699,000.

�� XTA Investments, Cavastowe and Andrew Kelly agreed to provide a formal and irrevocable acknowledgement of the validity of the Cavastowe Receivable (as varied) as being due and owing on 17 January 2008 and an irrevocable waiver and release of any and all objections, disputes or claims which they allege regarding the Cavastowe Receivable within seven days of agreement by the
company to the Proposal.

�� All existing guarantees and securities remain on foot, valid and binding for repayment of the Cavastowe Receivable (as varied);

�� Mr Andrew Kelly provided further security to the Company for repayment of the Cavastowe Receivable by the granting a first ranking security over 25 million shares of the Company held by Kelly Group Holdings Limited, upon all necessary approvals being obtained to the Proposal;

�� Following approval by the shareholders XTA Investments, Cavastowe and Mr Andrew Kelly paid to the Company a non refundable amount of $100,000.

So as far as LARA is concerned- your comments are rubbish- THIS WILL NOT LEAVE A BURNING HOLE IN SRA's BALANCE SHEET. All will be laid to rest on Jan 17 next year- the last remnants of a corrupt previous administration.