nwt, page-31

Reading between the lines, the $40m is effectively the current overrun on Jab1 plus whatever they have dropped (in cash terms) on their existing business. The financiers have only committed to put so much into the project and there were contracts in place to build the thing, so it would be interesting to understand how this has occurred?

There was a $25 million facility provided by the financiers in addition to the underlying finance. It seems clear that they will not permit NWT to utilise this. It also seems clear that they will not permit NWT to borrow and take additional debt on their books. In any event, who would lend to them apart from Ching.

So that is indeed the question - what is the basis of these additional costs? I think the recent set of accounts gives some clue as to what has been going on there - Note 12 - Correction of Errors. A payment to Adrian Ballintine's yacht company of $342k relating to Jab1 marketing. In addition, a reallocation of payments totalling $358k from Jab1 to Adrian Ballintine's personal account.

I would say it is clear that they have allocated significant $ to Jab1 and Exim are now going through them like a dose of salts and playing hardball and saying you have used the project as a dumping ground for your largesse and you now owe this money - go out and get it or it's all over.