announcement out stella sale, page-16

Jadel

The fund can't honour its commitments to builders/construction finance obligations and it has frozen redemptions for up to 6 months because of the anticipated run on the fund. Failure to fund construction seamlessly leads to diminution of security value.

Part of the funds in PIF went towards MFS projects which are now being sold for less than the purchase price. They say no more than 16% - well we'll see what the truth is.

Someone will pick up the financial services arm cheaply, not CIY, but maybe Wellington Capital (Jenny Hutson) or Fortress will take over the loans - some good, some bad - and work them out.

The projects that MFS has funded of its own will be sold off for the debt so that the funds are repaid to the PIF otherwise there will be big trouble for the directors who originally approved the loans due to not following in house risk compliance rules.

Remember chief compliance officer has resigned. There is where a lot of current clean-up activity will be focussed for the benefit of directors and officers, not shareholders.

Perpetual is not the panacea implied. Fee for following mechanical rules. Who knows what really went on?