eld debt looking forward, page-20

Pone and Sthe hut

The real questions which neither of you wish to face are:

1. Why wont you give us full disclosure of the financial position?

2. If you are doing such a great job why are directors resigning?

3. Why are we still bleeding cash at an operational level.

4. Why dont you engage with RHL? - any deal which provides cash may well in the medium term be better for shareholders. It is impossible for us as shareholders to understand what the value of the company is how can you expect RHL to do any better than we do?

5. If all the other MIS companies have failed to arrest negative cash flow and we are now left with as you put it onerous leases and the balance (being that which GFC did not think worth buying) what is the hole that it takes to break even on this division?

6. Speculation suggests that the automotive industry has started to get stressed again and there have been suggestions you wont be able to sell for Book value what is the the write-off that will be put through the books to value the automotive division at realisable value or fair value? You must have an idea by now.

7. Are we cash flow positive and profitable without the ATO refund and interest received from them this year?

Really I suspect that when we get the information we will not be happy because if we were to be happy they would have produced a market update right now to put the RHL approach into context.

I own both RHL and this ordinary share. No I did not buy @$1.50 nor am I bitter as I am around breakeven on ELD but a bit wary of RHL taking over the entire mess.

IMO management in ELD have not been that good and the GFC was at its height when they asked for the $1.50 recap. sorry but by then both Timbercorp and great Southern were in administration. IMO they should have done more to be able to see that the recap had a good chance the state of play today reflects IMO inadequate foresight and understanding of the problems. By early 2009 everything that was to come was a known factor IMO.

I dont blame them for the GFc but I do blame them for building a plan after the event that could not and has not solved the basic problems.