Ann: Results of Meeting - EGM, page-65

Update for everyone in case you aren't aware. Just have to word this so it stays up.

On Friday, Daniel Halliday, on behalf of the new BOD went to court against PWC, asking for voluntary administration to be lifted and the company handed back to the new Board of Directors.

The way in court to remove an administrator and to prove solvency, first you need to know what the debts are, then you need an expert report. Our new directors have appointed someone to do a report on solvency. The issue is PWC will not reveal how much is owed to creditors. Without this, David and his team can't show the court they have the funds to pay creditors because they don't know what the amount is. David also has to show the company has funds for operations to keep the company solvent. There is a line of credit being shown that would enable the company to trade.

Currently, the court case is now adjourned until Tuesday - this now puts it a day after the first creditor's meeting. Supposedly there are about $1.5M AUD declared debts in total. Wait for Monday's meeting. I have a great fear, that at the creditor's meeting, there will suddenly be a huge influx of other claims - even though this was not stated in Aaron's affidavit to court in what is owing. I have to be a little careful how I word this, but in the past it has happened that there is what they call "stacking" at a creditor meeting, where all of a sudden, there are a lot more claims made for debts owed. I am not saying that will happen tomorrow, but I would certainly keep an eye out to see what happens.

If there are new creditors and the amounts owing are greater than what the new BOD can show they can pay, the court case will be thrown out and then all power goes to the creditors. If there is another offer on the table with PWC, then the creditors could vote for that. Potentially that offer may stipulate they want certain people on the BOD or people removed from the BOD. PWC has the power to do both. Of course, I am not saying they would do that, but just have a think about the way things are going and ask yourselves why won't PWC show the currently elected director of the board a creditor's list