mystery banker, page-6

Not true that the bondholders have to get court approval to withdraw their redemption notice. It is made quite plain from the covering letter provided with the copy of the proposal that the bondholders have to agree to accept repayment, so the ball is still firmly in their court.

It is CMQ that need approval from the court to vary the undertakings they have given in return for being allowed to make the appeal.

So the proposal falls over if any of the following happen:

* Appeal decision is handed down before May 31
* Due dilligence not satisfactory
* Court disallows CMQ to vary their undertakings
* Shareholders don't approve arrangement (but then again what choice do they have but to accept?)
* Bondholders don't to accept $60mil as full and final settlement - after all they would be foregoing future interest and have to pay their legal costs to date

The irony of this situation is that the bondholders were probably trying to negotiate getting 75% at conversion instead of just under 50%. CMQ management stubbornly refused instead of putting the proposal to shareholders, and now this is the terms of the rescue package after $millions have been wasted on legal proceedings. Yet another CMQ management blunder.

With $8.4mil left in the bank, cash will run out in 3 quarters, ie. by the end of the year, if this proposal does not go ahead