priced for takeover, page-8

Hi Sydney6791,

I thought your query was answered by others on HC the other day.

I am not a native speaker of English myself. My English could get by in this market.

I basically agree with their comment re "appreciate", i.e. meaning "understand" in Laura's email below.

I guess she was saying that more from a perspective of confidentiality, rather than anything else.

Below is the letter from Investor Service re my questions on covenants and weekend AFR article.(for those who did not see it)

Cheers, W

-----------------------------
Hi xxx,



Thank you for your email. I apologise for the delay in coming back to you.



In relation to the article in the AFR on the weekend, it is Valad policy not to comment on rumours and speculation contained in the press.



Valad provided a market update on 23 January 2009 in which we confirmed we had initiated discussions with our banks regarding a restructure of our debt facilities and covenants. We believe that balance sheet strength is critical to the success of our ongoing business in the current market environment. As such, we have moved early to negotiate a revised debt package with our banks as a prudent step as part of our ongoing capital management. It is normal for both parties in this process to engage advisors to assist in these discussions. This appointment is confidential to both parties so we cannot comment on who may or may not have been appointed. We can confirm that we are not in breach of any covenant and neither group has engaged insolvency experts.



In relation to your specific questions in relation to LVR and ICR covenants, you will appreciate that we are now only 8 business days away from releasing our half year results. In these results, detailed information will be provided which will hopefully address all of your questions.



Lastly, in respect of your question in relation to specific levels of debt with CBA. Unfortunately, this is commercial in confidence information and we cannot provide you with this level of detail.



Kind regards