As a long time monitor of these HotCopper posts looking for...

As a long time monitor of these HotCopper posts looking for heads up on what the hell was going on at Antares and after ploughing through the Report to Creditors at length after receiving it on Monday (Note to Administrators - an exec summary would be appreciated) I would like to make some comments on the report and suggestions for voting on the resolutions proposed for the upcoming 2^nd Creditors meeting on Friday 2nd;

I was shocked to read that the expected return to AZZG noteholders and other unsecured creditors for the Pager Partners DOCA (Deed of Company Arrangement) recommended by the Administrators FTI is 2.6c/$ (low case 0.8c, best case 5.98c). This being as good as a total wipeout I’d be surprised in anyone would accept it, to me it looks like it is pitched to cover the administration fees at a minimum to gain the Administrators approval. As such I’ll be voting against the DOCA (resolution 1.a).

The remuneration of the former Administrators should be withheld until they can explain to creditors how the previous directors managed to receive payments totalling US$279k some 13 days (10^th May) after they had resigned as directors and the former Administrators had been appointed (28^th April). The current Administrators also need to explain how a subsequent US$199k payment was made to the IRS to cover the former directors’ tax liabilities some 7 days (17^th May) after they had been appointed. Whoever authorised these payments was either negligent and/or fraudulent. I’ll be voting against resolution 8.

I note that there is a Directors and Officers liability insurance policy for A$20m which should be able to guarantee payment of administration costs and priority debt (Trust Company) and possibly underwrite a future recapitalisation, but as the Administrator is yet to initiate any action that may lead to a claim on this policy this would not be of use in covering the immediate funding requirements.
In order to raise sufficient funds to progress the administration I would suggest the Administrators and the Committee of Creditors formulate a debt for equity swap and a capital raising sufficient to fund an ordered realisation and disposal of the company assets over the next year with the intention to wind up the company before January 2018, thereby allowing creditors and shareholders to crystallise and realise any losses in the 2017/18 financial year.

My preference would be to double up on the 2.6c/$ return forecast in the current DOCA and use the funds to provide ongoing funding for the administration rather than succumb to the lowball offers on the table.