Ann: Administrators Appointed, page-171

Okay guys. Just got off the phone to some one from FTI Consulting. They called back earlier than I expected.

So before I start forgetting what we discussed, here goes:

He said he was unable to answer any questions about the specifics of what went down on Friday except to say that events unfolded very fast and caught everyone by surprise. I read into that, that Macquarie were the initiators, but to be clear that is just my editorial comment.

From now on communications to shareholders and announcements to the market will be a low priority for the receivers as such things will be a cost to the creditors. They will likely do the absolute minimum in this regard and so will probably not produce the June quarterly. Their first priority will be to make an assessment of the state of finances and viability of the company, and produce a report to creditors. This will not be announced to market, but will be made publicly available on the ASIC website.

Certain subsidiaries are not in receivership as they are non-operating. These entities, such as Nullagine, are in the hands of the administrators. The receivers will hand over any subsidiaries that cease to trade to the administrators, who will preside over subsequent disposal. Shareholders are at the back of the queue and not likely to see a cent if the company is wound up and the assets sold off. In the event of a recapitalisation/restructure we can expect considerable dilution. This is probably a long shot, but could happen.

However, nothing will be decided until the receivers produce their report to creditors. In the meantime the mining operations continue as this brings in ongoing cashflow, and keeps the possibility alive for a restructure or sale as a going concern. Contractors become unsecured creditors in respect of money owed to them for services pre-receivership, but will be paid out of operating cashflow for ongoing work during receivership.

Well, that's about it. Hope this helps.