Insolvency, Creafin and I-World

RRG, as the Company did have the 3B facility at the time of trading then insolvency most likely was not an issue even though there was a mountain of debt accumulating on a daily basis.

Now the Company is in suspension and funds are not forthcoming from I-World since shareholder approval was sought and granted at the AGM last year then the question of insolvency is very much an issue.

On the 27 October 2014 ASX media release, the company wrote "Fairstar confirms that Creafin & Associates will not be receiving any fees in connection with this Convertible Note Agreement. Creafin have presented this opportunity to I-World".

It was interesting that Creafin presented and facilitated a $10M convertible note agreement but they did not want their cut of the pie, on broker rates this would have been up to $1.0M in fees.

This is highly unusually and may speak volumes of the depth, credibility and future of the I-World agreement as evidenced to date. If it looks too good to be true then most likely it is and Creafin showed their hand IMO.

Fool me once, twice but not a third time, Bingo! DYOR, please