plan b, page-26

The thing is that they didn't have much debt going into administration. Let's assume there is no cash left and that no creditors were paid and consider what we do know.

ANZ refinance (-62 mill) paid off +40 mill = owing -22 mill
Lease/Hire Purchase Facility -11 mill
Guangxin (paid from invent.) -19 mill
Creditors -53 mill

Total -105 owed to creditors

MUX - KZL stake +35 to 40 mill
Receivables +11
Trade & other receivables +22

Immediate cash to realize +68

Cash shortfall = -37 mill

Total assets = 638 million (less Lounge Lizard)
Total liabilities = 187 mill (Less ANZ Payment 40 mill)
Net Asset Equity = 451 mill

There is still a very good chance they will come out of administration. The average chapter 11 filing in the US has assets exceeding liabs by just 6%. Kagara's is -37/+451.

I think the bank stiffed them and that's no surprise given 1123 businesses were placed into administration in February. With funding cut off they had no option but to go into VA. I think they tried to put something together with Guandong but the bank still said no. The war between the RBA and the banks is killing Australian business and homeowners. I think the future for Australia looks very bleak and yet the AUD still rise. I think VA is a good option for KZL if banks don't want to lend and allows them to wait for overseas investors to see how toxic the AUD is. Why mine with the AUD at 1.05 again? Everyone has declared a currency war with slow global growth but the RBA remains fixed on fighting mythical inflation. The dollar killed Kagara this quarter not commodity prices. Just look at a chart from Jan-Mar.

Insolvencies at a record high for small businesses