Ann: Suspension from Official Quotation , page-3

Wednesday 25 March 2009
CommQuest could join in on privatisation
Natalie Apostolou

CommQuest CEO William Scott started the week claiming that "CommQuest will survive" despite being in the midst of radical company restructure, yet in a spectacular turnaround his ASX-listed company has halted trading and today has sought a voluntary suspension from quotation.

It is understood that Scott has been in a series of meetings and negotiations with interested buyers over the last 48 hours for various assets within his portfolio.'

Digital Media understands that KPMG has been involved in the divestment process, although the group would not confirm its involvement at this stage of proceedings. Interested companies involved in the negotiations have revealed that "everything is for sale" and industry speculation suggests that the suspension of securities is a pre- cursor to de-listing of the company.

In a statement to the ASX the company said it requests the voluntary suspension "on the basis that the outcomes of various actions currently being taken as part of the Company¹s restructure program remain uncertain." The restructure plan includes; "divestment of selected operating entities to third parties or the original vendors of the operating entity; closure of operating entities that are a cash flow drain on the Group; continuing negotiations with the ANZ Bank in relation to restructure of CommQuest's banking facilities; and implementation of further cost reduction strategies across the Group."

The company revealed that it would be unlikely to be able to make an announcement with a view to reinstatement of securities to the market until mid April . Scott re-affirmed on Monday that the company planned to shed most of its 16 non-performing businesses including the ad agency The Boiler Room, Pr group Shac and Pyro Media. He added that there was interest from investors in assert including direct marketing group The Smart group, Next Digital and Infodial. CommQuest posted a first half net loss of $46.4 million.

http://www.digital-media.net.au/Article/CommQuest-could-join-in-on-privatisation/474601.aspx