Ann: Pioneer executes new Senior Finance Facility, page-60

I cannot fault your comments about the likely upsides and the fact that the interest rates on the repayment plans are higher than the new funding rate. However I will expand on my comment about putting his modelling under the microscope by outlining the industry unknowns - the biggest of which is the percentage of current liquidations represented by Jobseeker and increases in Newstart payments which will cease altogether by March. The other is the number of workers which may be put off when the industry subsidies also cease and the zombie companies decide to close. I am hoping that Keith has over provisioned in the same way that CCP has obviously decided to cater for these uncertainties. Keith John is an experienced PDL operator and to some extent has led the industry into operating with a better philosophy to bring about better social outcomes than in the past. He has not communicated well with investors despite giving complex and well meaning descriptions of his modelling and his dispute with the current regulations surrounding accounting for the value of PDLs and my feeling is that most investors do not understand the intracacies of operating a PDL purchasing company. IMO he will eventually find the balance between cash flow, purchasing PDL needs and paydown of debt to secure a new and lower rate funding package BUT it will not happen tomorrow - it is going to be a difficult balancing act but he seems to be able to walk tightropes - so he remains on my watchlist.