Hi fellow shareholders : the Report toCreditors was issued late...

Hi fellow shareholders : the Report toCreditors was issued late Friday (26 Apr) & there are 123pages. Page 54 para 8.5 ‘Conclusion’ summarises the ‘bottom line’ andrecommends Creditors vote for a proposed Deed of Company Arrangement (DOCA 1)from Robert Duffin in respect of WPG Resources Ltd & Tunkilla, andLiquidation for the other 5 WPG entities. The Reportdiscusses alternatives but these are considered inferior to DOCA 1.

I have been infavour of looking into a class action against the those responsible for WPG’s demise. However, the Report does not consider thatDirectors have breached their obligations under the Act in relation to goodfaith, care and diligence, use of information or use of position. There maybe a case for Liquidators against Directors in respect of insolvent trading butpara 8.5 explains the complexities of such a claim and the defences availableto Directors and the costs which might outweigh any benefits even ifsuccessful.

Last time I was‘stung’ like this was when Australian Zircon Ltd failed & the ‘rescue’ resulted in my SMSF shares and capital being reduced proportionallyfrom 278,562 to 1,325 - I thought it was outrageous. I hope we're not headed for this kind of scenario!

However, youwould think that Bob Duffin wouldn’t risk loaning his money as set out in DOCA 1 unless therewere good prospects for success.

Not professional advice, please do your own DD