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To: StockDung who wrote (82964)	1/14/2003 12:02:38 PM
From: SEC-ond-chance	Read Replies (1) \| Respond to of 122087

New Tel is better than TV! Action on New Tel a fizzer By Fran Spencer THREATENED legal action to halt liquidation proceedings at failed carrier New Tel failed to materialise yesterday after rejected suitor Broadband & Wireless appeared to lose its nerve amid further confusion about its funding. The Hong Kong-based investment group announced it would seek an injunction to derail the liquidation following Monday's meeting, where BWL's proposal for a deed of company arrangement was rejected by major creditors, including Telstra Corp. BWL acquisitions manager Richard Steggall said yesterday morning the company had briefed a QC and was gathering affidavits, with the intention of serving an injunction on New Tel liquidator Phil Carter by the end of the day. But yesterday afternoon, Mr Steggall said the company had decided against legal action as "too expensive". "We believed we had grounds to challenge (Monday's) outcome but we have since decided we don't have commercial grounds to do it," he said. "We are currently considering our options in relation to just putting forward a straight asset sale proposal and leaving the liquidator to pursue any uncommercial transactions and directors on whatever grounds he feels he has." However, BWL's position was dealt a further blow yesterday when Perth businessman Mario Salvo denied he had agreed to provide funding for the company's offer. January 15, 2003

To: StockDung who wrote (82964)	1/14/2003 12:12:15 PM
From: SEC-ond-chance	Read Replies (4) \| Respond to of 122087

Salvo denies giving BWL $8.5m pledge By Fran Spencer MARIO SALVO pulled the rug from under Broadband & Wireless yesterday with a flat denial he had pledged $8.5 million in funding for the Hong Kong group's final tilt at New Tel. A letter allegedly guaranteeing the cash and reported to be from the Perth businessman was the linchpin of BWL's third bid for the failed carrier, after its previous two offers had been knocked back because of funding concerns. The purported funding was also central to BWL's threats to obtain an injunction, after the company's front man, Richard Steggall, accused liquidator Phil Carter of misleading creditors by telling them at Monday's meeting Mr Salvo only intended to supply $4 million. But Mr Salvo, contacted by The West Australian in Melbourne yesterday, said he had never committed to handing over the money. The owner of the $100 million a year Europcar car rental company confirmed he had been approached by BWL and had expressed interest but had not signed on the dotted line. "Basically, there was a proposal put forward to invest a substantial amount of money in a loan-type situation to Steggall . . . and I said I would evaluate it and if I felt secure and it was a good deal I would proceed. If not, I wouldn't," he said. Mr Salvo said he had been unable to get all the information he required on the deal over the Christmas break and told BWL, which was exerting "considerable pressure" for a decision, that he needed more time. "They said they had other alternatives and if I wasn't able to commit to investing they'd move on. As far as I'm concerned my time expired and I'd been bypassed," he said. "Did I have the interest, yes. Did I have the funds available, yes. Did I make a commitment, no - I didn't say I wouldn't lend the money, I said I needed more time and as far as I'm concerned we were told time ran out. "There was a strong interest there but I have no further interest in New Tel. I have had no further interest, knowledge or contact with Richard Steggall since January 1." Mr Salvo's statements appeared to cause confusion in the BWL camp, with director David Humann claiming Mr Salvo's lawyer had assured him of the funding at Monday's meeting. "The question was, as far as I can work out, whether Mario was investing $8.5 million or $4 million, but my understanding was he'd committed to $8.5 million but would reduce that to $4 million if anybody else wanted to contribute," he said. Mr Humann said Mr Carter had told creditors at the meeting he had received confirmation of some funding from Mr Salvo, but there was some confusion about the amount. Mr Carter could not be contacted yesterday. The Sicilian-born Mr Salvo was drawn into the New Tel saga when the Perth carrier struck a deal to buy his mobile phone business, Delta Phones, for $4 million in June last year. The collapse of the company left Delta Phones as a creditor, with "very little" of the purchase price - which was to be paid as a convertible note - handed over by New Tel before the administrators arrived. Mr Salvo said the amount owed was close to $4 million. The Delta Phones deal is not the first time Mr Salvo has been left in the cold over a convertible note deal. In November 2001, he became embroiled in the boardroom battle over stalled Perth e-tailer Bigshop when he stepped in with a deal to become a cornerstone investor after the exit of Macquarie Bank. Macquarie walked away from a planned $750,000 investment over concerns on the Bigshop board's skirmish with hostile suitor Fast Scout. Mr Salvo struck a convertible note issue deal for the same amount, but the deal fell over when Fast Scout won a court battle over board seats and the company's sitting directors were deposed. January 15, 2003