huge drop but picking up now. looks like a good bu, page-2

Looking like the fat lady has sang her song or almost finishing.

http://www.theage.com.au/news/busin...8518929612.html


Evans & Tate resists wind up application
May 25, 2006 - 11:04AM

West Australian winemaker Evans & Tate says it will "strenuously resist" an application to wind up the company.

Australian Beverage Distributors (ABD) is seeking an originating process to wind up Evans & Tate and its subsidiary Evans & Tate Premium Wines.

ABD and Evans & Tate have been involved in litigation for more than two years in a commercial dispute being heard in the NSW District Court in Newcastle.

"Based on legal advice, Evans & Tate will argue that the latest application by ABD is not in accordance with the Corporations Act, is not supportable, (is) misconceived and without foundation," the winemaker said in a statement.

"This latest application will be strenuously resisted, and Evans & Tate has instructed its lawyers to apply to have it summarily dismissed as an abuse of process.

"This would leave the ongoing commercial dispute to be heart in what Evans & Tate considers the proper forum, the Newcastle District Court."

ABD has also sought a declaration that the notice of meeting of noteholders of Evans & Tate's unsecured convertible notes, scheduled for June 14, is false and misleading.

The meeting will take place to allow noteholders to vote on changing a clause in their notes to overcome an accounting issue caused by the transition to international financial reporting standards (IFRS).

Under the current clause, total liabilities of the company must not exceed 80 per cent of total assets, however the transition to IFRS is expected to see an increase in this ratio to 89 per cent.

In March, Evans & Tate reported a first half net loss of $44.4 million, down from a $3.6 million net profit in the prior corresponding period, with the sharp decline blamed on continuing competitive market conditions and a loss of market share in the United Kingdom.

AAP