afgha holders representation at crs meetings, page-27

Extract from prospectus

Ranking and subordination
In a Winding Up, what
will Holders receive
from Allco?
– Allco Notes are subordinated. This means that in the event of a
Winding Up, Holders will be entitled to receive a repayment of
the Face Value and any outstanding interest on the Allco Notes
only after all other debts, other than those which by their terms
or at law rank equally with or behind Allco Notes, have been
paid in full, but before any distribution is made to Shareholders
and any creditors whose claims rank behind those of Holders.

I find this clause interesting in that we have not actually contracted to rank behind anyone. Just allowed someone to contact to rank before us. It would be very interesting to see what the banks contracts say.

Further from my reading of this interpretation of the relevant laws

http://www.murdoch.edu.au/elaw/issues/v9n4/tse94_text.html#Australian%20Position_T

I reckon unless they have direct security over a particular asset they are going to rank the same as us.

Comments please gentlemen.