Yes, there were debts owing "just" before FFX walked away from Morila.
That is not in doubt. It was listed in press releases you mentioned.
The issue now is whether there was a parent guarantee (FFX), written or implied, to its subsidiary Morila gold.
Shareholders don't details of the contracts.
Only words from Management of FFX.
But IMHO, why would FFX intend to issue shares to them @ 6cents per share, IF they had no Legal Obligations to the creditors in Morila???
That proposed action would IMHO suggest, FFX knew they had a legal obligation to pay the debts, and was trying to replace it with the issuance of new shares in FFX.
Glad I don't hold shares in FFX anymore.
This is going get messy. I am sure they are going to apply to freeze the funds in FFX until the arbitration is resolved.
FFX Price at posting:
20.0¢ Sentiment: None Disclosure: Not Held
