The freezing order is a legal imperative for Wecs directors to...

The freezing order is a legal imperative for Wecs directors to secure shareholders interests and has nothing to do with business development. Nevertheless Kangaroo Ressources could play a central role in finalizing the legal issue between Bayan and Wec.

Bayan destroyed TCUP a couple days prior the ramp up to full nameplate capacity in November 2011. They claimed mandatory HBO coal feedstock pricing as the main reason to do so. Hence technology issues where a minor issue. Some weeks later MD Flannery offered them to accept HBO coal pricing but at this point in time Bayan decided to end the JV asap. If the BCB technology was crap Bayan could have waited how fruitless Wecs ramp up to nameplate capacity developed late 2011. Sending a notice of default and leaving the JV quietly without any contractual risks would have been a smarter way. But: End of 2011 the Indonesian government tried to install a mandatory –but unwanted - coal upgrading law to boost jobs in the coal downstream industry. The lack of proven commercial upgrading technology was an issue for politicians at this time. It is very likely that Whites BCB technology was a thorn in the side of the coal mining industry that had to be removed asap at all costs. That would explain why Bayan pulled or had to pull the emergency brake at TCUP. The coal upgrading law was lobbed of the agenda in the last 6 years but Bayan is still facing at least a 100 Mio $ bill from Wec. Without any doubt it is unimaginable that Wec directors are willing to cooperate with Bayan anymore. On the other hand are Whites key directors close to retirement. So what if ... Bayan offers some cash, a minor stake at Krl with board membership and a JV option to upgrade low rank coal at the Roo ? This package could be worth nominal up to 100 mio $ with proper upside by deploying BCB at Krls low rank coal deposits. Bayans Kangaroo shares could much more worth overnight and the legal issue with White would be settled. Divide et impera.