The answer as to why CHM at the time did not document its...

The answer as to why CHM at the time did not document its investment is that it is alleged that the CHM directors/promoters at the time of the disputed transactions were also on MMX board (Nicu)or acting as promoters of MMX.

They are alleged to have used CHM cash and issued CHM shares including CHM shares that landed in MMX hands to sell on market to get cash to meet obigations in relation to securing iron ore assets.

They did not want to document because what they have done is alleged to have breached the corporations act.

They tried to bury CHM to hide misdeeds and unfortunately it was rescued and the events were uncovered by new CHM board.

The courts I believe have the ability to award CHM a portion of the assets if this is proven and to punish MMX by stripping it of assets from having gained from what is a breach of the corporations act.

The current board of MMX were not there at the time these events occurred but are now forced to defend the actions of the original board.

As to why Harbinger are buying I assume they are acting on assurances given publically by MMX. If they have further information not available to the public regarding case this would be insider trading so I assume that would not be the case.

If as distasteful as it may be to MMX shareholders the case goes against them then this will open up another can of worms with actions and class actions from shareholders against MMX who relied on MMX statements.

I still think that if you are buying CHM shares you must realise it is a punt on a court case and it is all or nothing outcome.

For MMX shareholders as much as you hate to here this if you have a significant holding in MMX which you cannot afford to take a loss on(if the case goes against MMX) then consideration should be given to holding some CHM as insurance. What you would lose in MMX should in theory be
made up in gains in CHM. (I cant wait to here the MMX shareholders response to this)

If the case is dismissed then MMX will power back on to the heights of other producers and your loss on CHM will be far outweighted by these gains.

Having read the AH statement of claim again it is with interest I await someone's explanation as to how MMX can explain away these transactions.