Ann: Change in substantial holding from FAS , page-4

re: Ann: GWR: Change in substantial holding f... Just have a look at the detailed enquiry and response from FAS re disclosure and solvency just issued. It's getting worse by the day.

Interesting that KJR has admitted in response to question 4 that "other than its disposal of 8 million GWR shares... it is in compliance with listing Rule 3.1 (continuous disclosure). In other words it seems to acknowledge a breach.

So on 9 October 2012 FAS disposed of 8m GWR shares for 18.5 cents. These were the shares held by the lender as security for the extended loan of $2.7m that fell due on 8/10. So the shortfall on this security is around $1.237m. So what is the lender doing about this shortfall?

Why has the lender now grabbed the security with this loan having been rolled over since August?

Maybe they are a bit worried about the new lender and the fixed charge they are holding who is busily clocking up interest at $10,000+ per day? Yes $10,000+ per day or $416.66 every hour of every day.

Its now over to ASX/ASIC to see what they make of this reply.