DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE:Interest rate

[15Stanmore]

Unfortunately Clairvest is in the postion of being able to shift all the liabilities into the Discovery Air parent, and all the operating assets into the subsidiary companies. The only real asset supporting the repayment of the DA.DB.A debenture today is the 15 year contract that DADS has with the Canadian Government. As of the announcement last week, Clairvest has shifted 74% of the shares from DA.A parent to direct ownership by Clairvest, so that the unsecured debenture holders only have a 26% claim on DADS after the secured debenture has been paid. If DA.DB.A debenture holders do not initiate legal action, you can be sure DA.A will go bankrupt owing $34 million to the DA.DB.A debenture holders and nothing to Clairvest. Time to contact the folks at the OSC in my humble opinion. Any other debenture holders want to join me? Send me an e-mail - happy to talk to you about what we can do.