This morning I phoned the administrators to ask some questions...

This morning I phoned the administrators to ask some questions about AFGHA. The person I spoke to was very helpful.

He said the Administrators will be putting out a status report on their Web site www.mcgrathnicol.com.au and/or as an ASX announcement. It is to announce a creditors meeting to be held in Sydney on Fri 14 Nov. at which at situation report will be given. The minuites of the meeting will be published on their Web site.

I asked about the procedures that are described in Apendix A of the prospectus, which are if I have understood correctly:

1. A "trigger event" occured on the 4 Nov when the Administrators were appointed.

2. The Issuer of the notes sends as soon as practicable a Notice of this Trigger event to the Holders.

3. The Holders can within 15 bus. days send an "Exit notice" to the issuer requesting full repayment of capital.

4. The Issuer should give the holder notice of the "Realisation date", which is when the repayment is to be made, no later than 25 days prior to the "Realisation date".

5. The "Realisation date" is the earlier of 80 bus. days after the notice of the "Trigger event" or an earlier dated nominated by the Issuer

7. The Issuer is in default if payment has not been made 20 days after the realisation date.

He told me that all of the above proceedures would in effect be short circuited and that the Issuer was now in default. Thus a note holder will be considered a creditor without going through the process above.

I asked if the administrators were going to dispute the appointment of Receivers by the banks - he said that is still to be decided.

He said the process is in its very early stages and far too early to form any opinion as to what eventual payout, if any, the the Note holder would receive.

DISCLAIMER: the above information is conveyed to the best of my very limited understanding and may be incorrect. Do not act upon any information in this post without first seeking professional advice - I am not a financial advisor.