There was no activity between 2-9 Oct 2003

There are 3 threads of conversation in this summary

Threads continued from previous summaries, out of a possible 12
2. Updates from Deloitte
10. Mudgee Abattoir - redundancies/GEERS

There is one new thread.
13. OTT ASX announcement: Equity Capital Raising


Thread: 2
Subject: Updates from Deloitte

Date: Mon, 13 Oct 2003 19:28:08 +1000
From: "Saltikov" <minaalex@i...>
Subject: Re: Deloitte distribution update 26 Sep 03

Hi Everyone,

Did someone get the mentioned below letter from Deloitte? They told Tom
it
will come in about 7 days from 26 September ... or there is another
delay?

I will very much appreciate any updates.

Regards,
Mina

----- Original Message -----
From: "Tom Northey" <tn@d...>
To: "openvictims" <openvictims@y...>
Sent: Friday, September 26, 2003 5:01 PM
Subject: [openvictims] Deloitte distribution update 26 Sep 03


> Just spoke to Morgan Kelly of Deloitte.
>
[...]
> They expect to send out a circular to employee creditors mid to late
next
> week containing recalculated entitlements. If you disagree with
these
> values, you can dispute it with them then.

==========

A response indicating that no letter was received were also received
from Steve Gerlach, and I (Nick Bishop) haven't had one either.

==========

The following email had a minor correction: Sally -> Sallie. Nick.

Date: 14 Oct 2003 09:27:34 +1000
From: "Geoff Hudson" <geoff.hudson@m...>
Subject: RE: Deloitte distribution update 26 Sep 03

Re APESMA eligibility.

The initial request was contained in their memo of 28th August. If in
doubt, send again by fax to:

Sallie Muir on (02) 9322 7261

If you wish to confirm receipt...
Her number is (02) 9322 5621
Email deloitte.com.au @ smuire

She's very helpful - be nice.

Geoff

==========

Steve Gerlach indicates he got a quick reply to his email. Reply is
below.

-----Original Message-----
From: Muir, Sallie (AU - Sydney) [mailto:deloitte.com.au @ smuire]
Sent: Tuesday, 14 October 2003 11:58 AM
To: GERLACH, Steven
Subject: RE: Deloitte OT distribution update 26 Sep 03



Steve,



Early next week, you will receive a letter outlining your summary of
entitlements as per the books and records of the Open Tel. We are doing
this
to give employees an opportunity to agree / disagree with the values.
Until
we have reached agreement with all employees on the value of individual
entitlements, we are unable to calculate the value of the dividend that
you
will receive. However I can tell you that the first dividend will be
declared for early December, meaning that you will receive payment
shortly
thereafter that date. Under the Corporations Act 2001, we have to
comply
with a fairly strict timeline when for declaring a dividend I.e. we
have to
advertise, allow certain time for creditors to submit proof of debt
forms
and then allow a further time period for creditors to dispute our
decision
on their claims before any monies can be paid.



Please do not hesitate to contact me if you have any further queries.



Regards,
[Snip problematic formatting.]
[Sallie Muir, Senior Analyst, Corporate Reorganisation Group]

==========

Another email from Sallie Muir.

-----Original Message-----
From: Muir, Sallie (AU - Sydney) [mailto:deloitte.com.au @ smuire]
Sent: Tuesday, 14 October 2003 12:36 PM
To: GERLACH, Steven
Subject: RE: Deloitte OT distribution update 26 Sep 03



Steve,



Yes, the [1st] payment should be made before Christmas. When you
receive
your statement of entitlement, it will include the full value of
entitlements outstanding to you. We will ask everyone to sign the
statement
if they agree to the amount. This will then allow us to calculate the
exact
dividend payment, given that many peoples' entitlements have been
adjusted
or recalculated.



Regards,



Sallie Muir

-----Original Message-----
From: GERLACH, Steven [mailto:steven.gerlach@s...]
Sent: Tuesday, 14 October 2003 12:09 PM
To: Muir, Sallie (AU - Sydney)
Subject: RE: Deloitte OT distribution update 26 Sep 03



Thanks, Sallie. So the first payment will be made before Christmas?



Also, the summary of entitlements will list the full amount? Or the "48
cents in the dollar" to-be-paid amount?

==========

Date: Tue, 14 Oct 2003 15:45:58 +1000
From: Tom Northey <tn@d...>
Subject: Re: FW: Deloitte OT distribution update 26 Sep 03

[...]
Re Sallie Muir, she worked on the OT case from the start. She and
Andrew
Needham (plus Peter Yates) are the only ones left of the original
people who
worked on OT case. Andrew Needham is on secondment at NAB so it is not
much
use talking to him even if you can get on to him. I think Sallie does
the
calculations and normally someone else does the talking.

rgds
Tom

==========

Date: Tue, 14 Oct 2003 17:46:30 +1000
From: Tom Northey <tn@d...>
Subject: Re: Re: FW: Deloitte OT distribution update 26 Sep 03

start_monday wrote:
> I think that declaring a dividend from the fund may be different to
> declaring individual payments.
>
> I also have a feeling that *not* the whole of the $790K is coming our
> way

Section 9.4 of the deed says they can pay the entitlements of creditors
in
installments, so they could potentially keep enough back to pay for any
disputes and give us the rest. e.g. pay out 80% of what OT paid them so
far.

Or they might just wait until it is all agreed.

>, the last creditors meeting gave DDT the right to make further
> deductions in the future for their own costs (I remember $150K there
> somewhere) . Someone might like to querie DDT on that, and
> subsequently we can all get a bit more pissed off.

The deed says the company remunerates Deloittes and meets their costs
(section 11.1) and "Only the Employees will be entitled to amounts
standing
to the credit of the Employee Fund" (section 9.1).

==========

Date: Tue, 14 Oct 2003 23:52:36 -0000
From: "start_monday" <start_monday@y...>
Subject: Re: FW: Deloitte OT distribution update 26 Sep 03

Thanks Tom. I remember reading something at the Crikey site about the
Ansett administrators creaming $10M off the Ansett fund - the one
that the extra ticket tax was created for - it made me think that we
might be up for something similar.


________________________________________________________________________
________________________________________________________________________


Thread: 10
Subject: Mudgee Abattoir - redundancies/GEERS

Date: Thu, 16 Oct 2003 13:36:42 +1000
From: Tom Northey <tn@d...>
Subject: Update on Mudgee Abattoir

It appears that the NSW govt has had legal advice that it cannot
provide
priority of employee entitlements over other creditors for the Mudgee
Abattoir. As you may recall, those workers are not covered by
Corporations
Law which normally provides this priority.

While it is unfortunate for these workers that GEERS payouts look less
likely, it should help focus attention on the weaknesses in the
entitlements
"guarantee" system.

***Ex-abattoir workers to rally over entitlements
http://www.abc.net.au/centralwest/news/200310/s967312.htm
Wednesday, 15 October 2003

Former Mudgee Abattoir workers will establish a picket-line at the
Mudgee
council chambers next week, protesting about unpaid workers'
entitlements.

More than 100 of the 250 workers who lost their jobs last month
attended a
rally yesterday, prompted by the State Government's recent claim that
it is
not responsible for paying the entitlements.

The United Services Union's Graham Kelly says the Government's decision
is
the result of Crown solicitor's advice that the state cannot change the
abattoir's constitution retrospectively.

"By not allowing that retrospective change to the constitution we can't
now
move the employees up as first-secured creditor, which would enable the
GEERS [General Employee Entitlements and Redundancy Scheme] funding to
come
forward," he said.

"So we are back to where we were on the very first day that the
abattoir
closed, and that was nobody is putting their hand up and owning up for
the
reponsibility for the outstanding payments of $5 million of unpaid
entitlements that workers are entitled to."

***Deputy PM defends Govt's assistance scheme
http://www.abc.net.au/centralwest/news/200310/s967996.htm
Thursday, 16 October 2003

Deputy Prime Minister John Anderson says the Commonwealth is ready and
willing to pay former workers of the Mudgee abattoir, but only when the
New
South Wales Government can insure the employees will be first
creditors.

More than 250 staff at the western New South Wales abattoir were put
out of
work last month after the it went into administration.
The United Services Union has now passed a motion of no confidence in
Mr
Anderson and in the NSW Minister for Local Government, Tony Kelly,
saying
there is a deadlock between the pair over workers' entitlements.

Mr Anderson says he is outraged by union claims and has defended the
Government's GEERS assistance scheme, which was also used during the
Ansett
collapse.

"The Ansett workers were covered by corporations law, which said the
workers
got priority and other creditors couldn't take it away from them," Mr
Anderson said.

"Other creditors didn't get it. The only reason it can't work with the
Mudgee workers is NSW won't make certain that the workers have priority
so
the money can't be taken away from them.

"There is no law in NSW covering those workers to say they have
priority
over other creditors. Until there is such a law, the money will almost
certainly be claimed by other creditors through the courts.

"And here is the rub, only the New South Wales Government can solve the
problem."

***Lease plans in doubt
By Don Mahoney
Tuesday, 14 October 2003
Mudgee Guardian

Plans to lease the Mudgee Regional Abattoir and get it back in
operation
before it is sold have fallen through...
[The administrator] said the door was still open for an interim lease
arrangement ... With just under three weeks to go before purchase
tenders
close, however, it appeared unlikely a lease would be arranged.
[The administrator] said 22 parties had showed interest in purchasing
the
abattoir and the tender process is under way...

http://tinyurl.com/r3qq

***NSW Legislative Council Hansard
16 September 2003
http://tinyurl.com/r3sd

MUDGEE ABATTOIR CLOSURE

The Hon. PETER PRIMROSE: ...Will the Minister [for for Agriculture and
Fisheries] update the House on ...the closure of the Mudgee abattoir?

The Hon. IAN MACDONALD: ...In the past eight years, the State
Government has
provided nearly $670,000 of assistance to the abattoir ... The Mudgee
abattoir owes its staff approximately $4.9 million in entitlements: It
does
not have the money. Protecting workers' entitlements is, of course, the
responsibility of the Federal Government. The New South Wales Minister
for
Industrial Relations has written to the Federal Minister, Tony Abbott,
urging him to provide assistance to the workers through the Howard
Government's General Employee Entitlements and Redundancy Scheme.

The Hon. Duncan Gay: What are you going to do?

The Hon. IAN MACDONALD: We have already put in $670,000. These workers
are
clearly eligible for help under Mr Abbott's scheme. I am advised that
to
date he has refused them help...



________________________________________________________________________
________________________________________________________________________


Thread: 13
Subject: OTT ASX announcement: Equity Capital Raising

Date: Fri, 10 Oct 2003 00:30:51 +1000
From: "Tom Northey" <tn@d...>
Subject: OTT Announcement: Equity Capital Raising 9 Oct 03

Announcement to Australian Stock Exchange

9 October 2003

Open Telecommunications Ltd (OTT)

Equity Capital Raising

Open Telecommunications Ltd has taken a major step towards re-quotation
on
ASX with the appointment of Paterson Ord Minnett to act as Lead Manager
of a
two stage equity capital raising for the Company. The capital raising
will
involve an initial placement to be followed shortly thereafter by a
prospectus based issue.

The equity capital raised will enable the Company to emerge free of
debt and
with positive working capital at a time when the Company's operating
cash
flows are becoming positive and its core markets are picking up.

The equity capital raised is to be applied as follows:
. Full discharge of secured debt;
. Early payment of the balance of Deed Of Company Arrangement (DOCA)
creditors;
. Payment of other deferred liabilities;
. Costs of the issue; and Working Capital.

The two-stage process will involve a placement to be undertaken
immediately,
followed by a prospectus-based issue to all shareholders shortly
thereafter.
The combined issues will raise an aggregate of up to $10 million.

The share placement will be subject to:
. Shareholder approval; and
. Lodgement of a prospectus for the purpose of raising the balance of
funds
sought by the Company. The Company is well advanced in the preparation
of
the prospectus.

Once all secured debt and DOCA creditors have been paid out, the
Directors
believe that the new equity capital issue will allow a material shift
in
management focus to that of business procurement in an environment
where
telecommunications industry investment in the Company's key markets is
recovering.

Critically, the significant re-alignment of costs to revenues that have
taken place during and after the Voluntary Administration coupled with
an
improved balance sheet should enhance customer confidence and create an
operating environment leveraged to sales growth.

Upon completion of the prospectus issue, which is anticipated in late
December 2003, the Directors will seek to have the Company's securities
re-quoted on ASX.

The Directors will keep shareholders informed of events as they unfold
and
look forward to their support of the issues in this important step
forward
for the Company.

For further information please contact:
Wayne Passlow - CEO
Open Telecommunications Limited
(02) 8925-3000
Andrew McMillan - Director Corporate Finance
Paterson Ord Minnett Ltd
(08) 9263 1211


*************************
[Tom's thoughts on this...]

I suspect this will mean early repayments for unsecured creditors, and
not
employee creditors. Late Dec 03 is the schedule for this raising and
it
will probably run later than schedule.

The capital raising will dilute any existing shareholders enormously
(including dissatisfied former employees, so we will be less
troublesome).

==========

Date: Fri, 10 Oct 2003 06:45:42 -0000
From: "start_monday" <start_monday@y...>
Subject: Re: OTT Announcement: Equity Capital Raising 9 Oct 03

Are Ord Minnett underwriting ? I can't see it being fully
subscribed.

- Rod