Court adjourned for lunch (and sorry that's it for your intrepid...

Court adjourned for lunch (and sorry that's it for your intrepid court reporter as I have to leave now )

(2hrs 45 in)....Registrar being taken to an example of excessive (ISX Counsel opinion) costs by ASX lawyers in the amended SOC. ASX SOC republished with failed Court action by ISX and pleaded admissions to extra correspondence. According to ISX Counsel should have taken about 1 hr but ASX lawyers charge is $140,000 (or thereabouts I think) (Interesting look on Mr Lim's face at this stage...)

ISX Financial EU profits being highlighted. Elizabeth Warrell's affidavit being brought to the Registrar's attention - particular profits and the fact it is financially successful.

ISX Counsel attempting to demolish ASX arguments about the value of the NSX shares. (It's interesting watching lawyers argue about the workings of the market and the value of shares!)

ISX arguing the ASX cost claim is grossly excessive. Pointing out NSX shares are a long term asset and as the asset is present in the jurisdiction and of sufficient value then it's unfair to argue that ISX can't pay up if they loose. Along with $1m cash & $3.1m NSX shares arguing plenty of $ to meet adverse cost order.

ISX pointing out NSX shares worth at $3.1m on today's market - at the lowest point they have been. Registrar asking for confirmation this asset is available for costs liability - reply is yes.

ISX Counsel (Peter Collinson) says (I think) ASX is asking for $3.259m for costs security. ISX proposing $1m into an bank account now to meet an adverse costs risks. Registrar asking who will hold the cash? ISX submits no basis for security costs order, but happy to cough up a $1m to quell the argument from ASX.

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5 minute adjournment

(110 minutes in)
ASX Counsel drawing attention to previous case where assets held overseas and implications for security. Trying to argue ISX group is (my words and interpretation) technically skint in readily realisable cash.

(my observation - laser focus on the two faces of ISX Counsel as they listen to ASX's Mr Lim...still talking)

ASX Counsel talking about lay evidence & expert evidence on the strike out application (getting technical and I'm not really sure about the points being made - some sort of dispute between ASX & ISX lawyers about who's expert is more expert I think?)
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(90 minutes in) ASX pushing back that only 3% of ASX's requested discoverable docs were used, where as 25% of ISX's discoverable docs were used. ISX Counsel argued ASX lawyers were wasteful in the size of the net they cast.

ASX seeking security of around 55% of (increased) costs - costs have increased $1m since Dec

Registrar asking about overlap and excess costs with 2 partners on the file.

ASX Counsel winding up arguments and security amount requested. Charge out rates being discussed. HSF senior lawyers (& para legals) charge above Federal Court scale rates and national rates. Registrar asking for clarification - how do I know what proportion of work is being done by what category of lawyers?

ASX Counsel now going through Probank financials...

Registrar questioning whether or not everyone is speculating about the value of the NSX shareholding in the event it is needed to meet ASX legals?
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(50 minutes in)... ASX Counsel still arguing about ISX's capacity to pay ASX legals.

(IMO "drying out" strategy is now being laid bare for all to see)
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(35 minutes in).... ASX Counsel (still) taking Registrar though Going Concern note in the financials and emphasizing ISX cash available. Point being made ISX has agreed to indemnify JK for (some) legals. Arguing it may cover JK ASIC civil penalties.

Now moving to ISXEU financials and cash available (and raising Clearpay & NSX). Talking about liquidity of shares in NSX if need to be sold to meet ASX legal costs.
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ASX Counsel making a point that ISX de merger docs say court case could exceed several $ million dollars. Raising point about ISX's capacity to meet ASX's legal costs. Registrar getting a bit testy - for what reason am I being told this? ASX says a need to seek security for costs as applicants no longer in AUS. ASX now addressing ISX capacity to meet adverse legal costs - going through ISX Financials and cash available on balance sheet....(IMO yawn)
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ASX Counsel making a point about ISX's capacity to meet legal costs. Now taking the Registrar through ISX's de merger documentation. (IMO smoke screen and flares now being deployed!)
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28 people viewing the hearing
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Hearing now underway with Registrar Gitsham. ASX making the point they haven't delayed the case. ASX raising concerns ISX might not have funds if they loose.