It is. Not Pennefather. That is merely a claim at the moment,...

It is.

Not Pennefather. That is merely a claim at the moment, not a creditor. There was going to be a court case over it, mentioned in the 30/6/16 accounts. Along with another case from ERJ's ex-partner for $300k.

From memory when they initially got involved with OpCon they were going to be installing 30, or 50 or something boxes per year and there was mention in the announcements of a minimum number per year.

The Horizon Power guarantee is now $220k.

Where is the OpCon box? How much is that worth? For this appt to be valid the security has to be over all or substantially all the assets of the company. That means that it must also be over the OpCon box in Australia (easy enough) but also over the part paid boxes in Sweden, or the prepayment on those boxes which, although they have been written off in the accounts, can still have some value. Can a prepayment be regarded as "personal property" under the terms of the PERSONAL PROPERTY SECURITIES ACT 2009?

All very puzzling, especially the security and its not being disclosed, but it would be surprising if KordaMentha's appt. wasn't valid because of a technicality.

A DOCA is most unlikely in this situation IMO. DOCAs are sometimes used if the company has a viable business but has become overburdened with debt. Diluting existing shareholders by 90% or more through new capital coming in eliminates the debt and provides working capital for the business. In ERJ's situation there is no business, no in-house expertise (none of the directors have a technical background), no IP - therefore getting c. $7m funding for a DOCA to pay off $4.5m of creditors and fund the installation of Jundee - no chance.