game over, page-18

The administrators are required to issue a report to creditors in the coming weeks. This report will detail the options for the future of the company if there is a proposal for a deed of company arrangement which may provide for a restructure of debts or fresh funds being injected to deal with creditors claims. Any restructure of debt to equity would result in a substantial dilution of the share register.

If there is no proposal for a deed of company arrangement then the company will go into liquidation and the assets sold on the open market on a forced sale basis. The proceeds of which will first be applied against the administrators costs, then if there is anything left over, the secured debts and then if there is anything left over employee entitlements and then if there is anything left over unsecured creditors.

There is rarely anything left over for shareholders.

The administrators report is prepared pursuant to section 439a of the Corporations Act and is not normally provided to shareholders. However, if you call the administrator you should be able to obtain a copy.