is elders going under, page-42

Let's not forget that the banks are unsecured. I hardly think that they would be in a position to have any say on the ELDPA divi. That might change if they re-negotiate. As it stands they have two choices, either call in the receivers if they are not being paid, their covenants are breached in a material way or if they can prove ELD is insolvent or try and re-negotiate something that gives them some security. If they call in the receivers they stand in line with all the other unsecured creditors including Mavis the contract cleaner who vacuums the Bathurst office twice a week.

If they "perfect" their security the courts will overturn anything if ELD goes to the wall within 6 months.

Ironically not paying ELDPA divi may be in breach of some of their covenants.

Unless ELD is indeed insolvent I don't think there is any chance the administrators will be called in, the banks just will not wait in line with Mavis.

Hold ELDPA