20090414 Jean Smal

Dr Mario Koppers Subject: Attachments:

FW: Edwafin image003.jpg

Good morniing Mario, I have managed to have a conversation with Soraya (I think) at GDLK attorneys. She has confirmed that the Liquidation of Edwafin is still on the court roll for Friday and as far as they are aware an offer was made to Mrs Griffen which she did not accept. I asked her in what order of preference would debenture holders be paid out should Edwafin be liquidated and the order is roughly as follows: Court Costs Liquidators Costs Taxes Salaries Funeral Expenses (For all the poor souls who have had strokes due to losing their life savings perhaps??) Preference Creditors (some debenture holders fall here) Debenture Holders Other Creditors She refered me to the Insolvency Act 24 of 1936 Sections 95 - 105 deal with the Preference in which creditors are paid. Section 97 deals with the what the liquidators are allowed to charge (I obviously wanted to know what they were making out of the unfortunate incident) Soraya did mention one potential risk which is, if the debenture holders put in a claim and there are not sufficient assets to cover fees then the claimaints could be asked to contribute towards fees. It is difficult to tell however when the time come to put in the claim if that will be the case. i.e. is paying a small fee to get something greater out worth it, or are we just throwing good money after bad. I asked where the attorneys got the debenture details from. Apparantley the debenture records are public documents on CIPRO. According to Peter Basset, an attorney I have been dealing with in PMB (who is apparantley trying to get R2 million back for an ex director of Edwafin) there was about R250 million owing to debenture holders. Soraya is of the opinion it is more like R195 milllion. The fact that you didn't get the same correspondence leads me to believe that they don't have up to date records. Also a bit scary to think that the attorneys may have to find an extra R50 million or so that they were unaware of.

Well that is my bit for the day. Take care, Regards, Jean Version: 8.0.238 / Virus Database: 270.11.54/2055 - Release Date: 04/13/09 17:56:00

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