plan b, page-16

BerlinBusinss,

Net Asset backing (NAB) is a moving indication. In a liquidation mode means very little. If there is more than one serious bidder (you would think that there needs to be at least 3) then you may use Net Asset Backing as an indication. In cases where there is a dead carcass then the law of the vultures rule.

Lets just play it simple here: If the NAB is indeed 60c and say there is almost certainty that in the event of liquidation 40% of this can be recovered I don't think the ANZ would have called in the administrators (lets be honest here ... its called voluntary administration but what other choice did KZL have if the banks were not compromising).

Lizard Lounge sold for 40-45% less than minimum expectation. This was on the last minimum expectation before it was sold. When the first rumour was heard that Lizard Lounge was "on the market" the valuation talked about was well above $250m ... then this number began to go down and down.

One thing that I do admit is that KZL administration case does not appear as bad as other administration cases where you know bankruptcy is the only logical option (heaven forbid that there is a massive new hidden write-down or undisclosed lemon that comes out from the left field). I do hold slightly more hope in KZL case.

Plan B is better than bankruptcy. I guess when facing 2 evils you pick the lesser one.

Good Luck to all shareholders and may you come out of this with a minimal loss.