Ann: March 2023 Quarterly Activity and Cashflow Report, page-15

Loans from directors are known as "secured creditors."

All others are "unsecured".

They rank lowest.

Also unless enforced are unenforceable.

For light bedtime reading, I refer you to the Corporations Act 2001 and accompanying common law precedent.

The loans will be used to fund operations so that assets that can be sold, are sold, and debts can be paid.

Simple, logical. So unsecured creditors can be paid something.

Or else the companies in question; Morning Star Gold NL and Au Star Gold Ltd would have been placed into receivership.

Then no one would get any money. Liquidators get paid first ...

Largest shareholders get to buy assets for pennies in the dollar

You can tell this is not my first rodeo.

The two subsidiary companies affected; MSGL and ASGL

WRM is the parent entity and its other assets are untouched.