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

Interest rate

[Amameal]

It is not fair. When the secured debt is getting 10% + interest rate, and at the same time unsecured debt interest is less. But, for the principal part, I do not see CVG will piss off all the unsecured debenture holders at the end. After all, we all want the company success, and everyone is happy.

[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