Telstra 2007 Annual Report Download - page 194

Telstra Corporation Limited and controlled entities
191
Notes to the Financial Statements (continued)
Other (continued)
Reach Ltd (Reach) working capital facility
We, t ogether with our co-shareholder PCCW Limited (PCCW),
previously bought a loan facility owed to a banking syndicate by
Reach Finance Ltd, a subsidiary of our 50% owned joint venture Reach.
As part of this arrangement, the shareholders also agreed to provide a
US$50 million working capital facility to Reach. Under the facility
Reach is entitled to request from Telstra a maximum of US$25 million
to assist in meeting ongoing operat ional requirements. Drawdowns
under this facility must be repaid at the end of each interest period as
agreed between the parties and the loan must be fully repaid by 31
December 2007. The applicable interest rat e is LIBOR plus 2.5%. As at
30 June 2007, Reach had not made any drawdown under this facility.
We have no joint or several liability relating to PCCW's US$25 million
share of the working capit al facility.
ASIC deed of cross guarantee
A list of the companies that are part of our deed of cross guarantee
appear in note 29. Each of these companies (except Telstra Finance
Limited) guarantees the payment in full of the debts of the ot her
named companies in the event of their winding up. Refer to note 29 for
further information.
27. Contingent liabilities and contingent assets (continued)