Those rates are typical of accounting firms, in fact they are very competitive. Rest assured the partners aren't working on this 9-5
The administrators added instant value through the standard moratorium on debts whereby they simply handed back leased equipment which KZL would have been contracted to retain under lease (despite much of it being unused). They also created value by cutting the significant number of employees (many of which would have been as unused as the leased equipment!). This is without mentioning removing the mgmt team. On these alone they would have paid for their fees.
The administrators have moved in Investec, obviously ANZ gave no flexibility and probably wanted to fire sale everything. Looks like the administrators are having a go at re establishing the coy in some form. Holders should take heart that Investec think there is life in it. That said shareholders are the bottom of the pile, behind Investec, creditors and employees. Be under no illusion, the administrators are working for Investec first, then creditors then you.
I see a possible re-listing (with a new name no doubt!) probably within a year but not that much value for shareholders (10c in the dollar is a good result), unless you tip in new equity of course :P
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
