Ann: Appointment of Voluntary Administrators to the Kaddy Group, page-177

Lecca are buying the debt for cents in the dollar.

The DOCA aims to:

• maximise the chances of the company, or
• as much as possible of its business, continuing, and/or
• provide a better return for creditors than an immediate winding up of the company.

If creditors vote for a proposal that the company enter a DOCA, the company must sign the deed within 15 business days of the creditors’ meeting, unless the court allows a longer time. If this doesn’t happen, the company will automatically go into liquidation, with the voluntary administrator becoming the liquidator.

Right now the BEST proposal that was provided was $0.025 per $1 owed for the creditors, basically saying that shareholders will be getting absolutely nothing.