guru's early read

Heres my initial read:

1. Michelmore has bungled this company all year and the refi to date, and needs to resign today effective immediately. He drops the football all day everyday and no one removes him. Clearly, this board is inept, disfunctional and I think quite possibly are breaking corporate and regulatory laws for not removing an incompetent CEO.

2. Soc Gen has effectively placed OZL into "Informal" admin....its own, as it now controls crucial and main decsions of the company and all its primary balance sheet management decision process, all asset sales, bridging finance and what it can be used for and all asset sales "proceeds"(if any sales can be achieved...unlikely as everyone knows in 8 weeks they can buy cheaper).

3. The Bankers are in FULL control. Michelmore should stand down immediately. He is no longer running the company anyway. He is relegated to just an operations manager of which OZl has one. He is a dead lame and useless duck. The board have a fidiciary obligation to remove him today. The bankers clearly dont trust his lack of skill or the board's, some thing I have said from day one. This is a lack of management confidence issue. Mgt blame metals markets.further highlighting and ivertinmg blame. Of course Francesca and Hedstrom cant say that but they have conflicts of interest and responsibilities to shareholders of which they do not fulfill adequeately any longer. Their jobs are aligned to an incompentent Michelmore and now to increasingly recalcitrant bankers. Shareholders are now in last place.

4. The board have also become dead ducks by default for allowing it all unfold and what power they have left should be used to stand Michelmore down for poor company financial management, poor I/S, B/S and CF performance and misreading changing metal markets and >85% shareholder wealth destruction accordingly.

5. OZL will find a rights issue impossible at any price because no one knows what they will be selling and what assets are staying. So investors just cant or will not give cash blindly. It has to have a set purpose. Expansion, debt repayment to specific banks etc.

6. ALl the balls on every level are in the air and no one knows how they will come down except the banks who are clueless but clueless and now armed with company director authority. We are clearly in "informal" admin today and February 29 is likely a formal admin date...unless a miracle happens.

7. The company merger is being broken up by Februray 27 orderly as can be and that is that. No rights issue as that would reenpower an inept management which the banks clearly dont like or trust nor do the shareholders. Thats what happened today. After that date, no sales means liquidation.

Or a red knight (chinese)... or sale of PH (partial or full) to BHP..(disastrous).

8. Its getting worse not better. Only good news today was 8 weeks of informal admin (8 weeks solvency) and many interested parties to buy assets but no transaction yet. It could easily have been liquidation today. Instead its Quasi Admin.

CEO has got to go. and Refi WILL be done.(thats my mail)

NOW, TODAY, THIS MINUTE.

Its not rocket science. Fire Michelmore. He has destroyed this great company. He should have respected the banks more, he was/is obviously arrogant and they became loan sharks in response.

Its not in Liquidation today because immmediate RIO tinto loan impairment and Book Value writedowns will immediately crush the banks.

85% wealth destruction and bungled refi, share suspensions that should not be given. Its an absolute disgrace.

Maybe a miracle can happen, because it will not come through this management's competence.

CEO has got to go...until im blue in the face.