Ann: Notification of Assignment of Bankwest Facility, page-5

CDR, I like your summary both 1 &2.
I think no 1 is most likely. It reminds me from memory of len ainsworth taking the bull by the horns (a majority holder ie....owner) when it was being poorly managed, virtually broke and he steered it back on track to be a massively successful coy. It's uncannily similar.
I think the idea of scenario 2 would not play out. It could not be in his interests as he would simply lose any value in the shares if it went under. It just could not be in his interests surely. He might get the underlying assets but it would not be worth anywhere near as much as it is now. After all, the lending is his money essentially.