Ann: Administrators Appointed , page-5

Jeff,


firstly can I say these guys have turned out to be either very crooked or totally incompetent. Imagine announcing on the ASX:-

" We have secured a 600,000 tpa contract"

without first confirming you have the finance approved how pathetic !!!!.

After speaking with the Administrators this is the agenda-

They have a meeting in 8 days with the Creditiors with the aim to establish a "Deed of Company arrangement".

They then have a meeting 2 weeks later to see if this arrangement has been successful. If so the Company survives and recommences trade and we shareholders have some value if not they go into liquidation and we shareholders get absolutely nothing!!!

See notes below with Explanation of what is involved with a Deed of Company Arrangement:-



DEED OF COMPANY ARRANGEMENT


PURPOSE

The purpose of a Deed of Company Arrangement is to formalise a proposal made by the directors during the Voluntary Administration, which has been ratified by creditors. A Deed of Company Arrangement is a legally binding document between the company, its creditors and the Administrator.

BENEFITS

It allows the implementation of a revised business plan and strategy to return the business to profitable trading.
The flexible nature of the proposal (i.e. the form and content of the Deed of Company Arrangement can be composed in any manner the company wishes, subject to approval by creditors).
It provides a greater return to creditors than would otherwise be available if the company were placed into liquidation.

Jones Partners has acted as Deed Administrator for many companies where we have worked with the company to see business profitability restored and creditors receiving substantially more than they would have otherwise received.