First affidavit of Daniel Mathew Bryant - Arnold Bloch Leibler

e less beneficial than the likely returns from an orderly realisation of theassets.(b) Having regard to discussions with ABL about the Proposed ConstitutionalAmendments (in regards to which legal professional privilege is expresslyclaimed and not waived), we are of the view that the Proposed ConstitutionalAmendments may be onerous and adversely affect the rights of Growers.(c)Replacement of the responsible entity of the Gunns Woodlot Schemespursuant to the Alternate RE Proposal was conditional upon a number ofmatters, including obtaining Court approval on various issues. We consideredthere was a significant risk that:(i)the conditions could not be met. lf the conditions could not be met,GPL would then need to wind up the Gunns Woodlot Schemes andrealise the assets (or vice versa). However, the delay caused andcosts incurred in trying to meet the conditions would significantlyreduce the value of the scheme assets and potential return toGrowers; and(ii)even if the conditions could be met, it would take a considerableamount of time and cost to meet them. During this period, there was asignificant risk that key agreements (in particular, leases of the landused in the Gunns Woodlot Schemes) would be terminated andGrowers could lose their interest in the schemes.(d)GPL is insolvent and we are without sufficient funds to continue to maintainthe plantations during the period required to fulfil the above conditionprecedents. The value of the plantations would likely decrease if theplantations are not maintained. The plantations will also be at a heightenedrisk of destruction by fire if fire maintenance is not undertaken prior to the nextfire season commencing in October 2013.(e)We were on notice from the Receivers that, under the Grower Loans, theContributory Model and the Proposed Constitutional Amendments may haveamounted to a "Material Adverse Effect" such that an Event of Default wouldoccur and allow Gunns Finance to demand immediate repayment in full of theoutstanding amount of the loan.24