Convertible Notes Info, page-22

As per the company update of the 23rd March, with the termination of the DOCA and the release of the company from administration the Creditors Trust has been established. My understanding of the DOCA is that once the Pager Partners syndicate pay $500,000 to the Creditors Trust that will extinguish all the creditors claims against the company.

The Creditors Trust administrators (FTI again) will probably use these funds to pay themselves and pursue a claim against the previous directors liability insurance policy. So if the trust administrators do manage to succeed with a claim there may be a payoff to noteholders (was it a $20m policy, so maybe up to 50%?) down the track, otherwise the administrators and lawyers will gobble up the $500k quick smart and noteholders will get zero return.

Hopefully noteholders will receive an update from FTI soon on their plans for the funds in the Creditors Trust and when we might get to recognise our losses for tax purposes.