Niiki,CMQ owes $60M to the bondholders plus legal costs and...

Niiki,
CMQ owes $60M to the bondholders plus legal costs and damages and Stark has a floating charge over all of CMQ assets.
At the end of the year, CMQ had $13M in cash. Now it will be less the Jan cashburnt; and the huge legal costs.

Yes, the covenant require $24M in cash but at the end of 30 June 2006 which sadly has now evaporated.

The difference between SGW's creditors and Stark is that Stark is a secured creditor with the floating charge, so in terms of priority Stark get paid before the CMQ employees after which comes unsecured creditors.
What will be left for unsecured creditors is anybody's guess.

And for shareholders to line up as unsecured creditors, they first have to prove they were misled which IMO can be proven.

The best thing for shareholders now is for Stark to take over the company, inject some capital and try to revive it. But then why would Stark wants to do that?

The executives that misled the market derserves to be jailed but are unlikely to!