Ann: Response to Civmec Legal Action, page-47

I'm erring towards the side of Yanlin on this one . Now whilst is should not be unusual to be saying as little as possible in terms of disclosing ' Discovery ' issues in a ASX announcement , I feel it more than sufficient to simply declare that you will defend the claims ' Vigorously ' . Stock standard legal response really.

Where I do have a problem is interpreting the foundation , and claims as a defense NOW by basically claiming you had the rights to a contractual ' Liquidated Damages ' claim BACK THEN. And surely if you thought that you did , you would have made mention of these assertion's in your accounts and / or offering documents as a ' potentially ' giving rise to possible liability and / or risk under the heading of possible legal matters.

And so without actually sighting the contract , we can at least all agree that any contractual or commercial undertaking would have actually specified either in % terms or and agreed $ Cost per day following a ' Determinable ' and ' contractually ' Agreeable ' practical completion date. And this in itself can be a very debatable if not arguable point of difference. Sometimes if a Liquidated Damages claim is perceived to be more a ' Penalty ' , it can even be deemed unenforceable.

Normally , a liquidated damages clause would be acted upon in writing at or around the time of the ' practicable completion ' date and it's implied terms being unmet , and so my difficulty is trying to understand why this matter had not been raised back in 2018

Plus in the legal context of invoking the application of Liquidated Damages , it would normally require the Principal by way of a Construction Manager or Supervisor to certify any of the liquidated damages being claimed. And so in this instance , it does not appear to be highlighted in the Contractor's complaint - Plus the mere fact that they have openly stated that they were offered AJM securities in lieu of payment suggests to me that there was indeed some level of negotiations being discussed . Else why would they even state this.

So lots of obviously unanswered questions here , and not exactly great timing as AJM heads into the back half of the year with the potentially large Interest Payments falling due in October as well.

Watching and monitoring my current downside risk even closer moving forward.......