reply from is, page-2

Hope,

Some valiant questions that you posed.

My answer to question 2 is this:

If asset values continue to deteriorate leading to negative assets, you know this necessitates VA at best. I'm not being bearish or pessimistic, but what would the alternative be in the event of negative assets??

From question 6. No dividends for 2 years. This issue that has been highlighted regarding reducing facility in CSF to 50 mill is quite unclear otherwise you would have got a more concrete response. Defabster's queries regarding this also have been met with crypticism from investor Services despite his and everyone else's best efforts.

If they achieve their asset sales tartgets why would they not provide guidance with this caveat?....Because CER still will not issue a dividend. That's my view.



From question 7, it's pretty clear that the asset sales scenario (as we know) is purely to appease bankers from a debt level point of view not an LVR point of view. Much to the ire and disagreement of Sarcophagus I think it was, I did say that asset sales will not necessarily reduce leverage and could in fact increase it. Well that's just a great example....$890 million of asset sales will reduce LVR by a lofty 1.2%.

This is a long-term investment. THe market has to turn for you to see any kind of return. Speculators will be and have been annihilated.