game over, page-9

I have only become aware of the VA appointment as a result of being a FER shareholder and noticing a post on the FER thead.

I have worked in the insolvency industry for the past 10 years and in my experience.

There will two meetings of creditors, shareholders do not have voting rights. The Company will either be 'restructured' via a deed of company arrangement, or placed into liquidation. Any restructure will be contingent upon support of the secured creditors, who are able to appoint a receiver to protect their interests. If a receiver is appointed, their sole priority is realising the assets of the company for the benefit of their appointor. Any surplus is made available to unsecured creditors. There is rarely a surplus for shareholders.

If there is no 'white knight' or deal to restructure debt for equity this one is heading for liquidation. These are the facts.

For more info on the insolvency regime in Australia I would refer you to http://asic.gov.au/asic/asic.nsf/byheadline/Resources+-+Insolvency+information+sheets?openDocument

The motivation for directors to appoint a VA is to minimise the risk of trading whilst insolvent which exposes directors to personal liabilty for debts incurred, it would seem that they had formed the view that there were no alternate sources of funds to meet working capital purposes.

good luck to you all