Applicant = CleeRespondent = IOUThe applicant questions the need...

Applicant = Clee
Respondent = IOU


The applicant questions the need to raise AUD$5 million on an urgent basis, or indeed any money at all. The argument in relation to this matter has focused on an affidavit by Mr Chong, the interim CFO of the respondent, which wasaffirmed on 1 April 2023. In that affidavit, Mr Chong proves that the respondent has cash at bank of about AUD$330,000, trade receivables of about AUD$3.8 million, and trade payables of about AUD$3.5 million. He explains that a large portion of the trade payables will need to be paid in the next month – that is, in the month of April – and a large proportion of the trade receivables will not be received for upwards of six months.18 He also explains that about AUD$3 million of the trade receivables will take between three and six months to be collected from customers, and other receivables totalling approximately $19 million are the subject of investigation, as a large proportion of them relate to questionable or fraudulent transactions. Mr Chong expresses the view that the respondent requires about AUD$1.25 million immediately to enable it to pay its April 2023 expenses, current outstanding creditors and further costs of prosecuting proceedings in the Malaysian High Court concerning the suspected fraud, as well as defending these proceedings through to 3 May 2023. Specifically, Mr Chong says that the respondent requires AUD$284,153 to pay its April 2023 expenses, AUD$563,373 to pay its outstanding creditors (which I understand to be a reference to those trade payables which are due in the month of April) and approximately AUD$400,000 for further legal, regulatory and compliance expenses to be incurred in the Malaysian High Court proceedings, as well as defending these proceedings and preparing for the EGM on 3 May 2023.