update on Jenny Hutson's mining resort plaything, page-3

Interesting reading the Financial report for Dec 2013 (Entrust Esplanade Property Fund) page 11
http://webcache.googleusercontent.c...3D&tabid=69&mid=394 &cd=2&hl=en&ct=clnk&gl=au



'The audited financial statements of Village National as at 31 December 2013 discloses a net
current liability position of $7.9 million mainly due to the bank bill facility of $32.3 million being
classified as current due to a breach of covenants.
Village National continues to be in breach of the covenants of its lending facilities as at the date
of this report. This indicates the existence of a material uncertainty that may cast significant doubt
about Village National’s ability to continue as a going concern and therefore, Village National
may be unable to realize its assets and discharge its liabilities in the normal course of business.
The audit opinion on the Village National accounts for the year ended 31 December 2013
included an emphasis of matter paragraph in respect of the going concern of Village National.
Village National’s ongoing operations, and its ability to meet its repayment obligations with
existing creditors and lenders, are dependent on a number of factors including:
- Achieving sufficient ongoing net cash flows to enable its obligations to be met;
- The restructure transactions approved by shareholders of Village National on 19 December
2013 proceeding as planned in 2014; and
- Successfully refinancing of Village National’s financing facilities.
Village National is working with its current bank to reduce outstanding debt levels. The first stage
of this is to complete the contracted sale of properties at Banana, Moura, Tara and Townsville.
This will result in debt reduction of $10.65 million. Village National is in ongoing discussions
with its current bank, plus other alternative banks to provide a new banking facility.'

Also interesting reading is the last page of the report and the conclusion given by the Funds auditors, KPMG