Message to Teachers

ILEC Reading Task Practice

Part 1 Task 1 Focus: Vocabulary

Instructions:

The following text is a recent website news article about potential breaches of directors’ duty.

Read the article then complete the gaps by underlining the best word from the four options in the table. The first example number (0) is done for you.

Administrator Identifies Breaches By Directors

by: MATTHEW DENHOLM From: The Australian February 26, 2013

FORMER directors of (0)failed timber company Gunns face investigation into whether the company traded while (1)______, used third party funds for cash flow and (2)______duties to plantation growers. A report to creditors by administrators PPB Advisory identifies these “potential breaches” of director duties and suggests they be further (3)______by a liquidator.

A meeting of Gunns creditors next Tuesday will vote on PPB Advisory’s recommendation in the report that the (4)______timber company be placed into (5)liquidation. PPB Advisory, appointed administrator in September last year after Gunns failed to (6)______an equity investor amid high debt and a prolonged trading halt, said that its investigations into the company were ongoing.

However, it said the company may have been trading while insolvent as early as March last year, when the Singapore-based Richard Chandler Corporation withdrew a $150 million investment offer. “As we are yet to form a (7)______position on the date of insolvency, we are unable to state definitively whether the Gunns Group traded whilst insolvent,” the report concludes. “Additional investigations will be required by a liquidator (if appointed) before a (8)______may be formed.”

The report said (9)______creditors, which are owed a combined $135m, will receive nothing, while outstanding employee entitlements of $10m are expected to be met. It concluded that a banking syndicate would (10)______some, but not all, of $446m still owed to it, but offered no certainty for $190m owed to other secured creditors.

Student Answer Sheet Task 1

Instructions: Underline the best choice for each question. Number 0 is an example.

Gap# / (A) / (B) / (C) / (D)
0 / ruined / failed / destroyed / busted
1 / bankrupt / illiquid / liquidated / insolvent
2 / violated / transgressed / breached / broke
3 / probed / validated / ascertained / investigated
4 / ruined / broke / collapsed / bankrupt
5 / bankruptcy / liquidation / insolvency / suspension
6 / obtain / procure / secure / protect
7 / decisive / definitive / final / conclusive
8 / position / attitude / view / conclusion
9 / secured / unsecured / preferred / ordinary
10 / recoup / regress / retrace / redraw

Part 2 - Task Focus: Structure

Instructions:

The following text is a recent website news article about potential breaches of directors’ duty.

Read the article then complete the gaps by filling in ONE word in each gap. The first example number (0) is done for you.

Administrator Identifies Breaches By Directors

by: MATTHEW DENHOLM From: The Australian February 26, 2013

FORMER directors (0)of failed timber company Gunns face investigation into (1)______the company traded (2)______insolvent, used third party funds for cash flow and breached duties to plantation growers. A report to creditors by administrators PPB Advisory identifies these “potential breaches” of director duties and suggests (3)______be further probed by a liquidator.

A meeting of Gunns creditors next Tuesday (4)____ vote on PPB Advisory’s recommendation in the report that the collapsed timber company (5)___ placed into liquidation. PPB Advisory, appointed administrator in September last year after Gunns failed to secure an equity investor amid high debt and a prolonged trading halt, said that (6)____ investigations into the company were ongoing.

However, it said the company (7)_____ have been trading while insolvent as early as March last year, (8)_____ the Singapore-based Richard Chandler Corporation withdrew a $150 million investment offer. “As we are yet to form a conclusive view on the date of insolvency, we are unable to state definitively whether the Gunns Group traded (8)_____ insolvent,” the report concludes. “Additional investigations will be required by a liquidator (if appointed) before a view may be formed.”

The report said unsecured creditors, (9)_____ are owed a combined $135m, will receive nothing, (10)______outstanding employee entitlements of $10m are expected to be met. It concluded that a banking syndicate (11)______recoup some but not all of $446m still owed to it, but offered (12)______certainty for $190m owed to other secured creditors.

Student Answer Sheet Task 2

Gap# / Answer / Gap# / Answer
0 / of / 0
1 / 7
2 / 8
3 / 9
4 / 10
5 / 11
6 / 12

Part 3 - Task Focus: Word Formation

Instructions: The following text is a recent website news article about potential breaches of directors’ duty. Read the article then complete the gaps by completing the right word form from the single word given in the table. The first example number (0) is done for you.

Administrator Identifies Breaches By Directors
by: MATTHEW DENHOLM From: The Australian February 26, 2013
FORMER (0)directors of failed timber company Gunns face investigation into whether the company traded while insolvent, used third party funds for cash flow and breached duties to (1)______growers. A report to (2)______by administrators PPB Advisory identifies these “potential breaches” of director duties and suggests they be further probed by a (3)______.
A meeting of Gunns creditors next Tuesday will vote on PPB Advisory’s recommendation in the report that the collapsed timber company be placed into liquidation. PPB Advisory, appointed (4)______in September last year after Gunns failed to secure an equity investor amid high debt and a (5)______trading halt, said that its investigations into the company were ongoing.
However, it said the company may have been trading while insolvent as early as March last year, when the Singapore-based Richard Chandler Corporation withdrew a $150 million investment offer. “As we are yet to form a (6)______view on the date of insolvency, we are unable to state definitively whether the Gunns Group traded whilst insolvent,” the report concludes. “Additional investigations will be required by a liquidator (if appointed) before a view may be formed.”
The report said (7)______creditors, which are owed a combined $135m, will receive nothing, while (8)______employee (9)______of $10m are expected to be met. It concluded that a banking syndicate would recoup some but not all of $446m still owed to it, but offered no (10)______for $190m owed to other secured creditors. / Q / Word
0 / direct
directors
1 / plant
2 / credit
3 / liquid
4 / administer
5 / long
6 / conclude
7 / secure
8 / stand
9 / title
10 / certain

Student Answer Sheet Task 3

Gap# / Word / Form / Gap# / Word / Form
0 / direct / directors / 6 / conclude / conclusive
1 / plant / plantation / 7 / secure / unsecured
2 / credit / creditors / 8 / stand / outstanding
3 / liquid / liquidator / 9 / title / entitlements
4 / administer / administrator / 10 / certain / certainty
5 / long / prolonged

Teacher Answer Key Task 1

Gap# / Option / Answer
0 / B / failed
1 / D / insolvent
2 / C / breached
3 / A / probed
4 / C / collapsed
5 / D / liquidation
6 / C / secure
7 / D / conclusive
8 / C / view
9 / B / unsecured
10 / A / recoup

Teacher Answer Key Task 2

Gap# / Answer / Gap# / Answer
0 / of / 0
1 / whether / 9 / which
2 / while / 10 / while
3 / they / 11 / would
4 / will / 12 / no
5 / be / 13
6 / its / 14
7 / may / 15
8 / whilst/while / 16

Teacher Answer Key Task 3

ORIGINAL TEXT (PASTE HERE)

Administrator Identifies Breaches By Directors

by: MATTHEW DENHOLM From: The Australian February 26, 2013

FORMER directors of failed timber company Gunns face investigation into whether the company traded while insolvent, used third party funds for cash flow and breached duties to plantation growers. A report to creditors by administrators PPB Advisory identifies these “potential breaches” of director duties and suggests they be further probed by a liquidator.

A meeting of Gunns creditors next Tuesday will vote on PPB Advisory’s recommendation in the report that the collapsed timber company be placed into liquidation. PPB Advisory, appointed administrator in September last year after Gunns failed to secure an equity investor amid high debt and a prolonged trading halt, said that its investigations into the company were ongoing.

However, it said the company may have been trading while solvent as early as March last year, when the Singapore-based Richard Chandler Corporation withdrew a $150 million investment offer.“As we are yet to form a conclusive view on the date of insolvency, we are unable to state definitively whether the Gunns Group traded whist insolvent,” the report concludes. “Additional investigations will be required by a liquidator (if appointed) before a view may be formed.”

The report said unsecured creditors, which are owed a combined $135m, will receive nothing, while outstanding employee entitlements of $10m are expected to be met. It concluded that a banking syndicate would recoup some but not all of $446m still owed to it, but offered no certainty for $190m owed to other secured creditors.

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