So the administrator's report confirms that if placed into...

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?