advisers to be gaslighted again, page-2

From: Adviser Services
Sent: Friday, 29 May 2009 5:27 PM
Subject: GSFM Management Buyout Adviser Teleconference Summary


This is good .




Great Southern Funds Management Ltd (GSFM) held a teleconference on 29 May 2009 to provide Advisers with an update on the negotiations with the Receivers of Great Southern Limited (GSL), McGrath Nicol, regarding a management buyout of GSFM.



If you were able to attend we hope that it provided you with sufficient information to communicate with your clients. To recap, and for those unable to attend, below is a summary of the points discussed on the conference call.



· As previously advised, the Directors of Great Southern Limited (GSL) placed GSL in Voluntary Administration (VA). Ferrier Hodgson were appointed as Administrators on 16 May 2009.

· GSFM and the entities that it manages remain solvent and are continuing to operate as normal.

· The Receivers have gathered significant information from GSFM over the past week and are now beginning to understand the business. In particular the Receivers are aware of the significant outlays that they will be required to make in the coming months for the Almond Projects;

· The Receivers have advised that they must advertise the GSFM business to comply with their duties under the Corporations Act. The business will be advertised next week and an Information Memorandum prepared immediately;

· A timeline for the sale process is not yet known however GSFM management anticipates it will take between 2 to 3 months;

· GSFM management regard this step as a positive sign that the Receivers are not seeking to wind up the business or the Funds it manages as this process would not realise the maximum value for the financiers. Likewise the Receivers are aware of the consequences of this action for the underlying investors and are keen to maintain the reputation of their clients;

· During this sale process the Funds will all continue to trade. GSFM Directors will closely monitor operations and solvency. Solvency is not expected to be an issue with any of the Funds during this sales process. All Funds and AF06 have sufficient capital to trade during this period;

· RFM RiverBank has a large exposure to GSMAL through the leases over properties at Hillston. GSFM management has made an offer to the Receiver regarding this which would reduce counterparty risk;

· Importantly it does not appear that the business will be wound up. The Receivers are looking to see if the management offer reflects the market price. Management is confident that it does;

· GSFM will send a letter to investors which details how their investment may be affected through the process. A copy of this will be sent to you before it is mailed to your client.