petition, page-15

ASX 14 feb 2019
3. In substitution for Flinders’ previously proposed rights issue, TIO NZ (via its subsidiary, PIO Mines Pty Ltd) will agree to extend the term of its proposed loan (Loan) to 3 years on terms which are no more favourable to TIO NZ than arm's length terms (which will include capitalised interest at a rate to be agreed).

So $25.3m + $3m + $4.6m + $5m int = $38m approx for a 3yr term.

for Zero debt to $38m in debt for no good reason.

FMS has no ability to repay this loan. The R/I has abandoned.
So the only way to repay loan is by R/I in 3yrs time, in a company that is delisyed with no avenue for s/h to trade their shares.
So who would want to subscribe for a R/I? Gee, I can only think of one shareholder.

It is my general understanding that directors can be held personally liable for debts incurred, when the company has no ability to repay the debt.

So do they have something in mind, which we are not being told about??
Because there seems no comittment by Todd to subscribe for equity in 3yrs time to repay debt.

So FMS is incurring this huge jump in debt with no ability to repay that debt.

What's going on??