Dear friend,I am the Principal of David Mond & Associates.I...

Dear friend,

I am the Principal of David Mond & Associates.I spoke out against the proposal at the Melbourne meeting.Our accounting firm's clients has around $2m invested in woodlotas via myself and clients.

I am also director and part owner of Recoveries Corporation and my partner Leon Sholl is an investor and solicitor director of Rec Corp and the company also owns Mason black Lawyers,litigation specialists.
We are very keen to issue injunction proceedings this week. We are sending a letter to Cameron Rhodes to that effect tomorrow.

We need to harness all forces to unite in this purpose as it will minimize shared costs and provide substantial
strength against Great Southern and its directors and advisors.
There also a number of Financial advisors who no doubt wish to participate in this application.

The issues before a court include:
1. This proposal is in contravention of the contract entered into by plantation owners with Great Southern."There are currently no provisions in the Project Constitution or the Corporations Act to allow the exchange of interests by all Project Investors in the 2002 (read same for all years) Project for GSL shares." page 4 Explanatory memorandum
2. There are loans outstanding against the plantation assets.These loans are based on the contract between great southern and the plantation owners as tree owners and not substituting shares for trees.Changing the underlying asset affects the loan agreement.
3.The tax payable on the shares brings forward any liability by 3-6 years.
4. There is no cash with the offer to pay back loans and the tax liability.
5. If we do nothing " your woodlots will be automatically acquired by a GSL group company" page 4 explanatory memorandum.
5. The plantations are the property of the investors. GSL has large debts to financial lenders and they are preferential secured creditors. On liquidaqtion,the shareholders would get nothing.
6. Given the current economic crisis,many investors will be forced to sell the shares to repay the debt and pay the tax.The share price will go to nothing and they will lose the asset of trees and be left with debts.
7.The plantation investors were never consulted prior to issuing the scheme proposal.Steven Cole says he recommends the offer in the absence of a superior proposal.
8.Mr. Steven Cole cannot in our view be considered to be an independant person as a Director of GSMAL.He and his 2 "independant" collegues sit with Mr. Rhodes and another director of GSP on the GSMAL board.Their fees come from Great Southern. The plantation investors have no representation.Mr. Cole and others at GSMAL have, we say,breached their fiduciary duty of care to the tree owners.
9.,Mr Duncan Calder of KPMG and KPMG have failed in their duty of care to plantation investors.
10.The offer was amended as the first offer was commercially a rip-off. Our view is that nothing has changed.

Please call me on 0418360349.

Kind Regards
David Mond

Do not play fool with this company gtp,----------taken from another forum ---regards wooduk