timber1956You are correct. Korda Mentha are utilising the cash...

timber1956

You are correct. Korda Mentha are utilising the cash to pay back the debt and pay themselves incredibly high fees. The business would be bettre off in the hands of the board.

The Administrators have a duty to get the best possible outcome for all stakeholders including shareholders.

Currently AEJ has only around $2m in cash with no recourse on Redbank that is under administration.

The best outcome for all stakeholders is for the lenders to agree to a long term funding agreement and let AEJ control Redbank again. The market would possibly re rate AEJ based on a long term funding agreement. This would then allow the board to consider raising equity to pay down the debt.

If managed properly all side could be winners. At the moment nobody wins and the administrators know this. I am geussing that the administrators have already advised the lenders that the path that the board was on was the right one for all parties.

I suggest that the lenders cannot face the reality of their stupidity by forsing the administration.

It is closing in on 6 months and my understanding is that the administrators are required to issue a report to ASIC. I am geussing they will have a lot of work on their hands so as not to look like they have only been sucking fees out of Redbank over the last 6 months.

Remember they said they would restructure quickly. That hasnt happened so they have little alternatives left.

Placing some heat on them will only force the matter.

At this stage I only value my holding of AEJ at $2.50/share, however uppng the anti can only produce an upside.

The real possiblity is that the administrator offers equity holders a "go away" fee cash for the lenders to take over the business. I do not believe it is completely over, but it wouldnt surprise me if it was! Each way bet. For me doing nothing only confirms its over.