estimate a small loss for the half year, page-5

LZA

I think you have to read between the lines.
They state that interest has not been paid for Nov & Dec. If you look at the amount being written off its $9.3m which is $0.8m above the loan outstanding which would incorporate the penalties etc.. not so much interest. They also mentioned that including the interest to February the addition loss is $1.05m The difference being the interest for January and February.

As for the $2.5m personal security, the announcement states that after reviewing with legal and financial advisers its options would indicate that either the $2.5m is worthless or that they are better off taking a punt and trying to get more by keeping enagaged with the funding discusions moving forward.

Overall they haven't been clear as to why they are not pursuing the personal garantee but I can only assume that they have taken a conservative position and written the lot off but have underlying hopes of getting a bit chunk of it back later. (possibly after they have tried to buy CMI on the cheap from shareholders)