Fidelity Placement, page-12

Effectively re-posting on this thread as more relevant....

IMO this announcement this afternoon of Class Actions is highly relevant to the Fidelity Placement.

It is the first critical domino to fall onto the stack that may result in material relatively short term negative 'knock-on' effects.

IMO as per below is the way I see it and IMO it has ramifications for the Fidelity placement and the cash provided by it.

Right about now GSW legal counsel are again closely perusing the fine detail of GSW's D&O "Side C" Policy.

As a general rule of thumb assuming that the GSW Board was robust in its governance and relatively conservative (sic) it may have had in place "Side C" cover to a level of the cash at bank (when the policy was taken out/rolled over) plus ~$10m and (up to) $20m to cover legal costs.

IMO there is no likely probability that GSW has more than ~$40m to ~$50m in cover.

The issue that now arises for Fidelity is that if GSW is facing a potential claim of up to ~$300m (this is an amount that has been stated in today's press) Fidelity IMO really have no option but to pull the trigger on their own separate action.

More than half of GSW's current cash at bank balance came from Fidelity and they will not want to share this with pesky retail shareholders or anyone else for that matter.

IMO tactically Fidelity has no option but to pull the trigger themselves and soon.

As I have stated repeatedly on this forum, IMO GSW management need to immediately seek to get a "Deed of Release" from Fidelity that their $54m placement funding is unequivocally sticking and going to remain in GSW's bank account.

If successful in securing such a "Deed of Release" from Fidelity it should also be announced to all investors via the ASX platform so that investors may form a view on the likely value of GSW's securities when they trade on ASX.

Separately IMO given today's announcements regarding the various pieces of potential litigation I really cant see Regal (who remember are largely LONG at between 7.5c and 25c) stay much longer in the cinema as it potentially starts to burn.

Godspeed all holders!