Sharing the key notes taken from First Creditor's Meeting last Friday :
1) PPB Advisory have been voted by the creditors to continue on as the Administrator.
2) Advertisements have been sent out to sell CCU as a business (including in Saturday's The Australian). But there have been ample support for the restructuring and re-listing of CCU.
3) Sprott is supportive of replacing CBA's loans, regardless of whether CCU is restructured and re-listed, or whether CCU is sold as a business to another entity. Sprotts is a supporter of the asset, not of the business. Sprott representatives had been onsite with Paul Bibby to do due diligence onsite last week. They are serious.
4) PPB is still working out the total amount owed to trade payable creditors (as there have been debts that were undocumented but claimed by certain minor creditors), but it is at least $15m to CBA for the loan plus bond, $3m to Magna, and $15.5m to trade payable creditors. At least $33.5m of debt. You can see the balance sheet on page 10 of the presentation file that was used for yesterday's meeting here : http://ppbadvisory.com/uploads/i336-Cobar-Group-First-Creditors-Meeting-28-03-14.PDF.
5) PPB spent a great deal of time in the meeting to explain the reason that they got in contact with CCU board since November last year. PPB was brought in on an advisory basis by the board as the board were already starting to be concerned about CCU's position then. As PPB was re-voted to continue on to be administrator, the creditors have shown that they are not concerned about their impartiality.
6) The second creditor's meeting will be held on 2nd May - when the decision will be made on whether the creditors will approve of a restructuring of CCU (DOCA), or the sale of CCU as a business, or the liquidation of CCU's assets to retrieve what is owed to them.
There were matters related to directors/management and share dilution that I discussed with PPB on behalf of the campaign group which you can read about if you signed up to our campaign. But overall, I would say that CCU being re-listed is still very high probabity at this stage, given Sprott's support. We'll know all by 2nd of May.
Thanks again for all of you who have signed up to support our campaign. The door is always open : we welcome any existing or prospective investor who are interested to join our efforts to try and get CCU re-listed. The more we have in our campaign, the more chance that minority shareholders' voice to get CCU re-listed will be heard by all stakeholders.
