update needed on liquidation process..., page-2

I contacted ASIC recently because of the lack of updates.

No replies to phone calls or emails and over 6 months since an update.

I held QMG for one day before suspension in smsf. Probably $20k down the drain based on assets that were probably worth a lot less than book value and an investment that fell through.

Not sure if the guy from ASIC has managed to get hold of Peter Stuntz but at least we got an update at long last today.

"The company’s last update to the market was released on 09 November, 2011. In this release it was stated
that the Chinese courts had agreed to place our Chinese subsidiary, Nanjing Quay Magnesium Co Ltd, into
liquidation. This release also highlighted that the liquidation process in China could be a lengthy one.
In the months that have followed this release only an initial meeting has been held by the liquidator – in
February, 2012. No further developments have been reported from China since then. Quay is currently
waiting on news of a second meeting which to date has not been forthcoming. Any meeting must be held
after 30 days’ notice has been given and to date no such notice has been received. It would therefore appear
that a further meeting between the liquidator and creditors will not happen until at least July, 2012. In
advance of the first meeting in February of this year the Board of Quay appointed a Chinese law firm to
represent the company during these proceedings. Due to intercompany loans Quay Magnesium Limited
(Australia) is the largest creditor of Nanjing Quay Magnesium Co Ltd (China). The law firm’s ongoing brief is
to monitor and liaise with the liquidator and to protect the interests of Quay Magnesium Limited should
liquidation proceed.
Because of the extended nature of the liquidation process Quay has used the time to continue to search for
new investors to raise the capital to recommence operations at the factory in Nanjing. The company is
currently in discussions with a potential Australian / Chinese joint venture group and has received a letter of
intent from them. These discussions have been ongoing for some time. This group has indicated a
willingness to make a small capital injection to cover working capital costs while a more detailed due
diligence is completed. It has indicated this injection will be made in the near future. This group has indicated
they will travel to China in early June to commence due diligence on our Chinese subsidiary and its assets.
Should this due diligence be successful this group has indicated that they would support the
recommencement of the factory’s operations as a producer of high quality magnesium alloys. This would
involve injecting sufficient funds to extinguish the liabilities of the Quay’s Chinese subsidiary thereby halting
the liquidation process. Itwould also fund the Australian parent company to the satisfaction of the ASX to
enable shares to re-commence trading on the ASX.
Further updates will be provided to the market at least quarterly or as soon as there is material progress"

not convinced anything will come of the potential cash injection based on previous comments/actions.