article, page-3

Here's the juicy part that relates to Lynas:

Even more galling was the fact that their chairman, Gordon Toll, and a US hedge fund emerged with the other 90 per cent or so - a good old debt-for-equity swap, you see. Gordon and the hedge fund, Yorkville Advisors, had helpfully provided some loans to Compass before its grisly demise.
Those loans would become equity thanks to a deal with Ferrier Hodgson, appointed administrators in January 2009.

Now, Yorkville and its founder, Mark Angelo, have been charged with fraud by the US Securities and Exchanges Commission.

As an aside, Yorkville is also financier to the likes of Drillsearch, Greenland Minerals, Nexus, Cougar Energy, Peninsular Mining, Aurox Resources, St Barbara, European Gas, Toro Energy, **Lynas**, Arafura Resources, Admiralty Resources, Linc Energy, Unwired, Industrea, Murchison Metals, Queensland Gas Company and Fortescue Metals.

So shareholders in the above might care to check the status of their credit arrangements with Yorkville, or YA Global as it is known. YA practices a pernicious form of lending called ''death spiral financing'', where it is issued with shares in the company with which it has struck its funding deal - usually a company desperate for cash.

YA can therefore ''short'' the stock in the knowledge that it won't have to buy back the shares on-market to cover its position.