LIQUIDATION OR ADMINISTRATION
I told Trimble at a GM in 2013, he could save PPN around $800,000 a year by sacking himself and cancelling the service agreement with his single shareholder company Metropolis City Promotions [MCP]. I haven't changed my view on that and I would think that an Administrator/Liquidator might hold the same view.
PPN's voluntary administration announcement following ASIC's appointment of a provisional liquidator appears to be a "Dunkirk" effort to avoid a court encounter with ASIC and preserve personal assets.
We will soon see which interpretation of Section 436A(2) is correct. My bet is on ASIC.
METROPOLIS CITY PROMOTIONS PTY LTD [MCP]
Although PPN shareholders haven't had financial statements for a couple of years, I would have thought that PPN was a long long way from insolvency.
On our calculations, MCP currently owes PPN close to $4 million with the extended repayment date expiring ages ago. Trimble and his son cannot vote to extend the loan.
I note that MCP was facing liquidation itself in the Supreme Court earlier this year but managed to escape at the last moment despite having its huge overdue debt to PPN.
MCP is also required to pay PPN around half a million a year in rent for the daily Planet brothel building. Without financial statements, we have no way of knowing whether the rent has actually been paid in view of MCP's financial problems earlier this year.
SHAREHOLDER REQUEST FOR GENERAL MEETING
Following Trimble's failure to provide audited financial statements or hold AGMs, earlier this year a number of PPN shareholders requested a GM sent by registered mail to the registered office. An Australia Post delivery receipt confirmed the GM request was received on 18 December 2014.
Under the legislation, PPN had until Thursday 8 January 2015 to call the GM which had to be held by Wednesday 18 February 2015. Trimble again showed his contempt for minority shareholders by failing to call this meeting.
DAY OF RECKONING
After about 12 years, the day of reckoning is fast approaching for this joke of a company which started with a glossy prospectus full of naked women in 2002. At least the prospectus is now worth money as a collector's item.
PPN Price at posting:
20.0¢ Sentiment: None Disclosure: Held
