fas dumps 13.5m gwr shares, page-10

Substantial shareholder cessation finally lodged which shows the 13.5m shares in GRW were disposed of for consideration of "approximately $1.35m" How can shares be disposed of for an approximate amount? Any sale of shares must have a defined consideration. So it looks like they were grabbed by the secured creditor. The secured creditor advances a loan of $1m (at an interest rate of 60% pa) and according to the 2012 audit report at 30 June 2012 the amount due on this loan was $1.75m and interest was accruing at $50k per month. So by Xmas when these shares were sold the loan would have been over $2m. The market price of the GWR securities prior to Xmas was around 18 cents, well above the "consideration of approx $1.35" so what gives? Did the creditor settle or compromise the balance or is the secured creditor sitting there waiting for balance of his loan?

When grilled by the ASX about solvency, the Company told the ASX on 17 October 2012 that it had made all appropriate disclosures but was in discussions with its secured creditors as to the renegotiation of its loans and was not in a position to make an announcement yet about the progress of these negotiations.

Well FAS how about telling the full story about this secured loan now as clearly something has either been negotiated or has happened and by inference in your reply to the ASX this was something FAS considered to be a disclosable matter?

And what about the $1m convertible note that fell due yesterday? Has it been redeemed or is this yet another in-default facility to add to the list? Who knows?

Continuous disclosure is for wimps.