Ann: Notice of Extraordinary General Meeting/Proxy Form-TTN.AX, page-3

So the administrator's report confirms that if placed into liquidation there is no return to shareholders.

Can anyone educate me how this adds up (all from the FY15 Report)

Current liabilities: 3.4m
Current assets: 2.9m
Non-current assets: 17.8m

Thus total equity should be 17.3m.

I notice that in the presentation that accompanied the report, they mention 5.9m in lease obligations to Royal Wolf. This does not feature in the FY15 report itself anywhere that I can see.

This would reduce total equity to 11.4m.

Yet the restructure presented would make the current total holdings of the company worth $16,000 (from 3m, consolidated 40x then revalued at 4.7x less to 0.8 cents, a total reduction of 187 times in value)

So how is 11.4m of total equity worth only 16k? I thought of some possibilities..

1. More debts/creditors that did not appear in the annual report (such as the 5.9m lease obligation to Royal wolf)
2. Further impairments to non-current asset values
3. Costs/expenses incurred since the FY15 report that have not yet been reported to market

I'm interested if anyone knows if further debts/creditors such as point 1 would be a breach of asx continuous disclosure? I'm not an expert at this and perhaps these debts are actually hidden in the FY15 report somewhere?

Regarding point 2, I find it highly unlikely that the drill rigs would not sell for at least $1m each, they would reasonably fetch $2-3m I would expect but perhaps in liquidation would receive less. They have already been heavily impaired on the balance sheets and down-turn or not there is cash that will buy bargains.

I can only assume that cash management has been prudent since FY15 annual report and should not be such a significant figure to have the impact required to explain the apparent loss of equity.

Perhaps I'm being naive here?