how did this company fail?, page-8

The lawyer I spoke to also suggested (cynically) that you would choose a low profile firm like this if you don't want too many questions asked......

My intuition on what has happened here is pretty strong. It was a distressed sale only because I believe the Directors were made to feel stressed. Someone was pushing their buttons and HARD.

Can I add a little more Machiavellian conspiracy? OK bear (pun intended) with me. Let's say that the Directors felt that with the planned capital raising the company could achieve all its business goals. High five. But lets say that the shareholders who were going to fund the raising got cold feet and decided they wanted their money back. They in turn put pressure on the Directors for a solution that, lets say, could put a smile back on their collective faces.

The advisers that appeared out of the woodwork and "we are here to help" were significant shareholders and/or note holders. They also had "mates" who were co-invested and wanted to get their dosh back. OK, so how do you do that?

Well several ways, but one could include a "friend" that could acquire the asset for a "stressed" price and then pay back the advisers or friends of the advisers a "spotters fee". Alternatively, that cosy little group could (suddenly) own a slice of that (the acquiring) business and thus benefit from the future earnings upside of the asset.

Now if the advisers are also getting a commission from CXN then you have created the perfect circle.

Yes, this is worthy of a class action and I would even suggest criminal investigation. If someone wanted to approach one of those mighty class action firms and invite disgruntled and disenfranchised shareholders to discuss to see if there is prima facie evidence for such action to succeed, I, and another shareholder, would be happy to have a very deep and meaningful discourse on what, I believe, transpired. Join the dots.....