<p>Summary of call Nick C and I had with Shane Gallwey and Bridget Hallahane on 11 August.</p>

<ul>
	<li>JM had called Shane after receiving our letter week &ndash; he was rattled and upset it had been sent to GAM</li>
	<li>Shane asked him if his proposal would be forthcoming &ndash; JM said yes</li>
	<li>Shane/Bridget were having a call with Downing that afternoon to discuss KPH and ensure that Downing were controlled &ndash; but a proposal on re-opening would have to be developed</li>
	<li>They were looking at cost of process and cost of doing a Govt CBILs application through Coutts who were the clearing bank for KPH. Difficult if loss-making but they have seen them done. Need to have fresh forecasts showing capability to be profitable</li>
	<li>Also worried about JM putting company into administration &ndash; we said co-ordinated attack on JM essential to show him how much he could loss/suffer if he did. Also important to take a co-ordinated strong line across all pubs</li>
	<li>We mentioned Dowling and that we were considering him and some others. Bridget lives in Greenwich and knows the Trafalgar. We said that important for them to meet Frank as well if we wanted to go with him.</li>
	<li>They were negative on Cherry going back in</li>
	<li>Gallwey acknowledged they had been blindsided by JM but agreed he had to go. Noted that they had been grateful to JM when he had brought in Downing to fund refurb when GAM had been unable to do a second EIS fundraise, as expected, due to change in tax regs</li>
	<li>They had received an EIS response from HMRC two days before &ndash; not good &ndash; lots of info about JM promoting pub group/ referred to job ads for positions in the &ldquo;group&rdquo; etc &ndash; querying control. They are upset by what he has done to compromise EIS position</li>
	<li>GAM also upset with JM on valuation on KPH and sending it to us. They were not told there was one and he is not allowed to provide info outside the board due to his confi undertakings</li>
	<li>Admitted that they had had trouble getting hold of JM</li>
	<li>Philip Hare had supposedly advised application across the 3 pubs. Guinness had introduced Roger Blears for second opinion but not sure JM had used him. Information about status generally contrary to what JM had told us &ndash; so he has been covering up</li>
	<li>We agreed it was important to get the KPH letter to Steve Partridge to review but confi issues to navigate.</li>
	<li>Not impressed by Rachel as CFO</li>
	<li>Supportive of changing KPH board and will consider 2 directors being added by us. Worried though about having common directors across companies if EIS compromised. Agreed we should have Steve P talk to both Hare and Blears. GAM said they&rsquo;d be happy to pay Blears.</li>
</ul>