INSIDERS PLUG MONEY HOLES IN ALLIED BRANDS CASH DRAIN

As predicted last week, the failure of the "special offer" to current shareholders of Allied Brands Ltd (ABQ) failed to garner anything close to the funds necessary to pay for the debt-heavy Villa & Hut. Most of the funds they were trying to raise in this "deal" were earmarked to plug the cash hole in the Allied Brands balance sheet, as well as throw non-performing CEO Shane Radbone a bone. Insiders claim Radbone is mostly sidelined but directors fear another major shorttime executive leaving abruptly would send the wrong (but honest) signal to the Australian Stock Exchange.

So the "mates" have stepped up to plug the cash hole. The 3B statement filed Friday shows the ratbag of the week as Ray Beath, (pictured above, left), a director at PPK Group which also was suckered into doing its dough in this failing company. Along with Beath, PPK Group director Glenn Molloy is implicated in this additional cash injection. Molloy was an ABQ director and was removed by liquidator Korda Mentha executive Lachlan McIntosh when he assumed control of the company during its last foray near bankruptcy.

Molloy was apparently instrumental in talking the rest of PPK Group directors into this "strategic investment" - I guess their strategy is to throw their share holder money down the dunny! Wonder how he explained his ejection from the Allied Brands board?

It is unclear who's money Ray Beath has now funneled into Allied Brands from the "Beath Investment" company. Perhaps it's client money from Holden & Bolster Avenir, an accountancy he runs in Sydney with some very surprised partners today. Or perhaps it's Chinese money from his financial ties to the Australia China Chamber of Commerce in New South Wales.

We look forward to additional information into this transaction.