read the announcement correctly

As usual we have the same HC posters who deliberately distort the announcement and follow their own downramping agenda.
Lets read the announcement
IT SAYS
"On 13 August 2008, an application to wind up the Company under Section 459A and 459P of the Corporations Act 2001 was lodged with the Supreme Court of New South Wales in respect of the repayment of convertible notes. The Company is in the process of obtaining a deed of release and expects this to be place prior to the Court hearing in mid - September 2008, and as part of this settlement, the plaintiff will withdraw the originating process that commenced those legal proceedings. "

Please note it said
"The Company is in the process of obtaining a deed of release "
AND
"the plaintiff will withdraw the originating process that commenced those legal proceedings"

If you use some commonsense you will realise that this was done by noteholders to get a better deal for converting the notes.

ALSO
"The Company currently has 27 million 10% unsecured 20 cent convertible notes on issue which expire on 2 October 2008 and are due for either redemption and repayment or conversion. Given the state of the current financial markets, the Com pany has had discussions with several key convertible note holders who have expressed a willingness to convert some or all of the notes they hold at a lowered strike price, or continue their investment in QuikTrak by subscribing for new convertible notes to replace those that expire. "

Again this says that,
"several key convertible note holders who have expressed a willingness to convert some or all of the notes they hold at a lowered strike price, or continue their investment in QuikTrak by subscribing for new convertible notes to replace those that expire"


Again if you use some commonsense, you'll realise that the noteholders are prepared to convert some notes (yes at a lower price) plus roll the existing notes into new convertible notes.

In fact this is good news, the noteholders will convert some notes into shares and subscribe for new convertible notes this means that they WILL continue their investment in Quiktrak.