Capital Raising Estimate, page-18

@ChengZang as a new investor I encourage you to keep asking questions, You should verify anything you are told though through your own research.

With the current suspension Flight Centre made the decision that the market was not fully informed with repect to the company's liquidity. It's my view that the company has done the right thing (and in compliance with ASX listing rules) by remainingsuspended until financing is confirmed. The AFR has reported today that the company is pitching a financing deal with institutional investors as we converse. My best guess (and frankly hope) is that financing is along similar lines to the Webjet capital raising announced yesterday. That is that a large proportion of the raise is to existing investors. It is r most likely that Flight Centre trading would reinstate on an ex-entitlement basis. If so, and you are not already an existing shareholder you won't be able to paticipate in the rights issue.

The possible components of any deal might include:

• A placement to Institutional investors
• A rights issue to existing shareholders
• Sale of certain property or business assets
• Statement on Staffing

The company has already witheld its dividend generating $40M.

Its very difficult to pitch a price to institutions when the share price is being punted from pillar to post. In suspension it will be up to manangement to convey the underlying value of the business to potential investors to obtain the best price for shareholders. Unfortuantely, circumstances will most likely dictate that a capital raising will be done at a discount to underlying valuation. People have a habit of anchoring to the most recent share price in this regard! I personally believe that, in time, Flight Centre can capture a large proportion of its historical value (I dont mean share price). A few survivors can actually become stronger in recovery due to a loss in competition. I lean heavily on Flight Centre's brand value, and the experience of its managing director in making that call. This is a highly unusual situation however, and it is at times like this that major miss-pricings will occur.