4 December 2008

The creditors of ACF Investments Limited (ACFI) voted in favour of a Deed of Company Arrangement (DOCA) at the second meeting of creditors in Sydney and via teleconference on December 2.

The meeting is a follow-up from the first one held on November 6 where a creditors committee of eight people was appointed to work with administrators PPB. The DOCA was recommended by the creditors committee after more than 40 hours of meetings. David Hagen, chairman of the creditors committee, made a presentation to the creditors meeting along with the committee’s recommendation to creditors.

The Administrator estimated that the return to creditors will be between 72 cents and 87 cents in the dollar with a potential future return of up to 105 cents in the dollar.

According to Rodney Brady, chief financial officer of the Seventh-day Adventist Church in the South Pacific, under the DOCA, the Seventh-day Adventist Church Ltd (SDA Ltd) will pay the Administrator of ACFI about $10.8 million. This is comprised of full repayment of loans totalling $6.8 million for church related projects and a $4 million “liquidity facility” to the deed fund to enable an early payment to creditors.

As a result of the repayment by SDA Ltd and under the terms of the DOCA, creditors who deposited funds after 31 July 2008 will be repaid their deposits in full prior to Christmas 2008. Other creditors will also be paid about 20 cents in the dollar before that time.

Under the DOCA, Avondale College Foundation and Avondale Nurseries Ltd will be contributing all their net assets to ACFI.

We speak with Mr Brady about some key points the emerged from the meeting.