shareholder action imf brief, page-28

Heads up - pirates next move

Had contact with a shareholder this arvo - not a HC poster but happy for me to post on hc.

He spoke with James Alexio from the administrators - Ferrier Hodgson.

Advice is the administrators are expecting a deed of arrangement to be forthcomming from one of the creditors. (No names mentioned but guess who I think it will be)

Shareholders could also submit one if we wanted ( although the administrator is is not expecting it )

Administrators are attempting to track down all creditors before the first creditors meeting in about five days time.

Business as usual at mine site but they have reps on site assessing the situation

They also have staff working on this company in Perth - Sydney - Darwin and expect to send Reps shortly to the other Compass holdings to review them as well

Should have a better understanding of the company in about 30 days

My understanding is - if the deed of arrangement is accepted - shareholders will be left out in the cold. Toll for example could offer cents in the dollar and if other creditors accept that, he gets the lot for stuff all.

As I understand it, if shareholders can show they were misled by information provided by the company - or lack of it - we may be able to be ranked equal to unsecured creditors and therefore get a seat at the creditors table and we would have to agree to any deed of arrangement before it was accepted. BUt Im not a lawyer

If they are expecting a deed of arrangement to be forthcomming from a creditor then it sounds to me like some speed is needed to have shareholders recognised as being misled so we can get a seat at the creditors table.

I will try to lodge somethign with IMF Monday or at least make contact. Have emailed Martin Jones advising of intention.