Worse Is Yet To Come?, page-1335

Geee I am glad some of my comments get your tick of approval as having "some merit". I feel lucky you were never my teacher or lecturer, I would have got a fail every time.

Let me try and answer each question with my view.

1.Do MG farmers still have the option to vote no and list (the banks will force this?).
Not sure I understand the question really but if the Board of MGC want to change the constitution it will need to go to a vote. Only shareholders can vote and over 90% of the votes cast (not votes eligible) must be for the proposal change.

Second part of the question? The banks can't force a constitutional change but they can foreclose on any debt due or introduce or modify any covenants relating to that debt and any failure to meet the debt obligations or breaches of any of the covenants that may trigger a constitutional change.

2. Fair value to buy out the Trust that would not trigger a legal action?
No idea but suffice to attempting to buyout the Trust would not be the right approach unless they sought to do an on-market buyback and announce it accordingly. In that case they would probably use a market price based approach. If nothing else this would make a legal action a hard one to get any real traction.

3. And if it were to list, what would that price be as it has to raise enough to remove the debt and it would require issuing more shares and how many?
How many question can you squeeze in to one sentence?
OK let me work backwards on this.
MGC has a listed vehicle on the ASX already so it would be easier for them to look at moving MGC as the corporate into that vehicle but firstly it needs to remove itself from a co-operative status. Secondly there is no need to remove the debt it can be restructured and so long as the company can service the cost of the debt it is OK. As for new shares being issued it would be better to do a swap of supplier share for ASX Ordinary Shares and the same would apply to the Units in the MGC Trust so the net amount of MGC Ordinary shares on issue would depend on a number of variables but the last rebalancing statement announcement will give you some idea of how many. Irrespective of all this MGC still needs to clean up its asset portfolio, contract, lease obligations, inventory, corporate structure including the Board etc etc. before it could be in a position to do this relisting as a single corporate vehicle and my estimate on past experience is that it is at least 12-18 months out at the earliest. Part of this clean up will unlock some capital that would be redeployed to debt reduction or working capital so when it does relist it will not need to go to market for more capital for historical matter but more so for whatever their go forward plan maybe and that well include new processing plants, M&A activity, offshore activity, new trading systems, new anything and everything any and everywhere etc etc...

*Phew* Try that and if it doesn't make sense that is because I haven't proof read what I just wrote.

Saturday night on H/C is so much fun. Anyone watching the footy or a good movie? Or if in a village north of Australia somewhere with no power then maybe watching the tide go in and out.