The Munday Group

Appointment Type: Voluntary Administration Appointment Date: 09/04/2010 Appointee(s): John Lindholm, Peter McCluskey	Office: Melbourne

Background Information:

John Lindholm and Peter McCluskey were appointed Voluntary Administrators of the following entities of the Munday Group by National Australia Bank Limited pursuant to Section 436C of the Corporations Act 2001 (“the Act”) on 9 April 2010:

· Hamday Pty Ltd – ACN 113 225 979 (Trading as ‘The Grand Frankston’);

· Joday Pty Ltd – ACN 111 150 509 (Trading as ‘Players on Lygon’);

· Magday Pty Ltd – ACN 113 225 657 (Trading as ‘Golden Nugget’);

· Pieday Pty Ltd – ACN 109 800 357 (Trading as ‘Court Jester’);

· Spar Holdings Pty Ltd – ACN 100 379 628 (Trading as ‘Sugar Gum Hotel’);

· Taylor McKay Pty Ltd – ACN 118 950 244 (Trading as ‘Whalers Inn’);

· Upday Pty Ltd – ACN 106 215 356 (Trading as ‘Golden Fleece Hotel’); and

· Yadnum Pty Ltd – ACN 106 053 212 (Trading as ‘The Cove Hotel’).

(Referred to as “the Gaming Venues”)

They were subsequently appointed Voluntary Administrators of the remaining entities of the Group on 12 April 2010, being:

· Dontaris Pty Ltd – ACN 067 640 920;

· Fishermen’s Pier Pty Ltd – ACN 100 738 583 (Trading as ‘Fishermen’s Pier Restaurant’);

· Hot Summers Pty Ltd – ACN 069 834 555 (Formerly trading as ‘Lorne Hotel’);

· MGQ Ayr Pty Ltd – ACN 116 838 825 (Formerly trading as ‘Ayr Hotel’);

· Munday Group Pty Ltd – ACN 116 558 420;

· Munday Group Holdings Pty Ltd – ACN 117 478 458;

· Munday Tiger Pty Ltd – ACN 126 769 328 (Trading as ‘Man Bo Towers’);

· Ricnic Pty Ltd – ACN 066 794 509; and

· SRAM Nominees Pty Ltd – ACN 102 863 981 (Formerly trading as ‘Torquay Hotel’).

( All Administrators Appointed) (All Receivers and Managers Appointed) (Collectively “the Group”)

Ian Carson, Craig Crosbie and Stephen Longley of PPB were also appointed Receivers and Managers (“Receivers”) of the Group.

Current Status and Actions Required by Creditors:

At a second meeting of creditors held on 15 July 2010, John Lindholm and Peter McCluskey were appointed Liquidators of Hot Summers Pty Ltd, MGQ Ayr Pty Ltd, Munday Group Pty Ltd and SRAM Nominees Pty Ltd. Ricnic Pty Ltd was also placed into Liquidation on 22 July 2010.

Creditors of Hamday Pty Ltd, Joday Pty Ltd, Magday Pty Ltd, Pieday Pty Ltd, Spar Holdings Pty Ltd, Upday Pty Ltd and Yadnum Pty Ltd resolved for these Companies to execute a DOCA, which was completed on 4 November 2010. John Lindholm and Peter McCluskey were appointed as Deed Administrators.

On 3 December 2010, creditors of Dontaris Pty Ltd, Fishermens Pier Pty Ltd, Munday Tiger Pty Ltd and Munday Group Holdings Pty Ltd voted to place these Companies in Liquidation and appointed John Lindholm and Peter McCluskey as Liquidators.

Creditors of Taylor McKay resolved to enter into a DOCA with the Company and the Deed was executed on 14 December 2010. John Lindholm and Peter McCluskey will act as Deed Administrators.

The Receivers are in control of the Group’s assets and its operations. They will be solely responsible for, and will determine all issues relating to the Group’s ongoing operations and the manner in which the assets are dealt with.

All enquiries you may have in relation to debts that have been incurred prior to the appointment of Administrators and Receivers should be directed to this office. Any queries in relation to ongoing dealings with the Group should be addressed to the Receivers.

Next Milestone and Estimated Timetable:

The Administrators have convened a creditors’ meeting for creditors of all of the Gaming Venues except for Taylor McKay Pty Ltd for 20 December 2010, to consider a proposal to vary the DOCA.

A copy of the notice to creditors is included in the Documents available for Download section.

Likely Outcome for Creditors and Timetable:

Investigations are continuing with regard to preference recoveries relating to the Liquidation Companies. The success of these recoveries will determine the return (if any) to creditors.

Creditors of the Gaming Companies are estimated to receive a return of approximately 5 cents in the dollar. Timing of the dividend payment will depend on when settlement of the sale of the Gaming Companies occur.

We will advise creditors when this is clearer.