Ann: Refinancing of Loan Facility and Retirement of Receivers, page-40

If as part of the DOCA they request to apply Section 444GA of the Corporations Law then all or a proportion of existing shareholders' equity may be transferred by force to CHEL to satisfy the debt. If Section 444GA is placed in DOCA then shareholders be left with nothing. See prior cases like Ten Network, Orton Group Limited, Mirabel Nickel or Nexus Group. Not saying Section 444GA will be applied in the DOCA but could be the way CHEL could get entire company.

Basic of Section 444GA: "Section 444GA of the Corporations Act empowers the administrator of a DOCA to transfer shares in the company, with the consent of their holders or the leave of the Court. The Court may only give leave if it is satisfied that the transfer would not unfairly prejudice the interests of shareholders of the company.The context is that Part 5.3A of the Corporations Act allows the directors of a company, if they have decided that it is insolvent or in danger of becoming insolvent, in the sense that it cannot pay its debts as they fall due, to put the company into voluntary administration. Doing so forestalls winding-up proceedings and provides an opportunity to enter into a DOCA, which is in many respects similar to a creditors’ scheme of arrangement. The objective of this regime is to enable the business, property and affairs of the company to be administered in a way which maximises the chances of the company (or its business) continuing in existence or, if it cannot continue, brings about a better return for the company’s creditors and shareholders than an immediate winding-up.Accordingly, when section 444GA applies the shareholders will have little (or no) equity in the company, often nil, and a proposal to refinance or reconstruct the company will have been adopted. It is usually used where a deed provides for the shares to be transferred to a person who will provide funds to pay the company’s debts, but who requires 100% ownership of the company in return, and the alternative is a liquidation in which creditors will receive less than under the deed, and shareholders will receive nothing at all."