IMO:I think the likelihood of re-negotiating the terms of the...

IMO:

I think the likelihood of re-negotiating the terms of the CN's would be unlikely, unless they are all held by one entity and already have a "relationship" with CLZ.

It would not be faithful to shareholders if KAT GAP was spun off into another entity that is debt free with CLZ holding all debt and retaining shareholders.

I'm pretty sure the ATO will look at where the debt originated as to where it is financially linked and much of that would be KAT GAP, so still consider the new entity as a Phoenix operation.

The CN owners retain face value of the CN which is a $4M liability in the CLZ balance sheet until/if redeemed.

They also currently own more than 50% of shares if redeemed and have a combined liability greater than current market capitalisation in CLZ balance sheet.

They are also likely one of the biggest creditors if it goes under and may be related to the existing $10M line of credit? If that is the case then "they" potentially could be offered CLZ by a liquidator if it went down that path?