excerpt from the afr ...

This comes from Horsetrader, who has been kind enough to pass on some of the comments from the AFR etc. You should pop onto the OZL forum and thank him.

Anyway here is the gist of it..

Wilson HTM Analyst Andrew Pedler, who has been following Kagara since 2006, said yesterday was a scary day for investors. But management told him it was confident of exiting administration.

"I get the sense that it's more a case....that the voluntary administration was put in place to give the company a bit of shield from any other creditors that might get nervous and decide to pull the pin. It's to allow them a cleaner run so that they can get the bank facilities that they are currently in reorganised and the new bank facilities that they want properly installed. I don't know if I could put a probability on it but this once has a good chance of working its way through. Clearly, the sooner it can be done the better."

RBA cut rates by 50 basis points I see too. Too little, too late for many businesses. This could prove a positive during the VA process if the dollar falls back below parity in coming weeks. A big cut by the RBA like this signals that the Australian economy is much worse than even they predicted but we all knew that.