Ann: Notice of General Meeting/Proxy Form, page-23

pbawley,

From the notice P5

"The board of Antares is seeking to extend the reset date for the notes to 31st March 2016 in order to give the company the ability to assess the number of redemption notices received from noteholders by the final date stipulated in the Trust deed (in respect of the current reset date) being 19th October 2015 and to allow Antares sufficient opportunity to process the current sale process being conducted in respect of NS & BS."

Later on the same page

"If resolution 1 is passed, redemption notices lodged by noteholders will be redeemed by Antares on the amended reset date of 31 March 2016, unless withdrawn by noteholders prior to this date."

They need at least 75% approval from those voting to get the motion passed.

From the accounts at 30th June 2015 the company had A$7M in cash, plus A$0.589M in trade & other receivables. It had current liabilities of trade & other payables of A$2.345M.

So effectively just over A$5M in liquid assets (other than the Breitburn shares) when you add in the A$0.09M of share purchases in early July.

Since then the company has received 4 dividends from Breitburn (includes the October payment) which will have brought in @ A$1M, they paid A$1.18M to noteholders in July & will need to pay the same again on 30th October.

So all that takes the liquid assets to under A$4M by the end of the month and you still need to account for 4 months of directors salaries & company admin costs & legal fees etc.

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Clearly the company doesn't want noteholders redeeming now. It would like to know well in advance how many are wanting to redeem so it can plan accordingly which is why they've put forward this resolution.

Given that the Breitburn shares are worth A$14M, they will be able to borrow against them in the short term (for maybe 50% of there value max) but I'm sure they don't want to have to bail them for anything like U$2.50 a share.

Work out the various scenarios,

If redemption's are requested for under 1.5M units and the vote succeeds .............
If redemption's are requested for under 1.5M units and the vote fails .............

If redemption's are requested for between 1.5M & 5M units and the vote succeeds .............
If redemption's are requested for between 1.5M & 5M units and the vote fails .............

If redemption's are requested for between 5M & 8.5M units and the vote succeeds .............
If redemption's are requested for between 5M & 8.5M units and the vote fails .............

If redemption's are requested for over 8.5M units and the vote succeeds .............
If redemption's are requested for over 8.5M units and the vote fails .............

LOTM