indicative doca proposal. - hnc, page-12

LC56,

Normally with a JV cash calls are made on participants and given a very short time to pay 3-7 days, if any fails to pay various remedies can be enforced and depends on agreement, for example dilution of their interest to compensate other participants or legal action etc.

All you have to do is look at last quarterly and see the costs incurred for CMR, you will see $19M is way beyond a few weeks expenses and therefore they were in default of the JV agreement for a considerable time in order for this massive liability to build.

Again something as material as this required disclosure.

Also explains why they didn't approach the shareholders with an issue as this would have been disclosed in a prospectus and admission they were insolvent which would have killed of any fund raising attempt.

We can now see it was only a matter of time when administrators would have been called in, beyond me why they allowed shares to trade for so long.