That is not true. Consider a bank repossessing a house with a mortgage of $100k on a $500k valued property. The law prohibits them from executing the sale for anything under fair value ($500k in this case).
Finally, who might be interested? I'd suggest if you were correct (which i am sorry but you are not) and GXY thought they could pick this up for $40m, then we'd probably see Wesfarmers withdraw their Kidman offer for hundreds of millions and offer slightly more, say $50m. Then another company with cash (from China maybe) doing the same, say $60m. Then a revision from GXY etc. etc. etc.
That is why the VA is calling someone's bluff. Once the valuation on fair value, good and bad scenarios is produced, all bets are off.
