Jakedog,I always liked Sargent Shultz, he always tried to avoid...

Jakedog,

I always liked Sargent Shultz, he always tried to avoid trouble. Shultz, and all the other nazis in Hogans Heros were played by jewish Americans.

Back to RED.
Loan documents have a fairly common structure. A loan becoming repayable when an operation ceases is an uterly standard condition.

First alarm bell. Didn't like mention of criminal in relation to the Corporations Act. You are talking about the borrowings of a Phillipines based Corp quite posibly from an offshore unit of UBS AG. You have jurisdictional issues to surmount. You would also have to interest a statory agency such as ASIC.

Second alarm bell. The comments on loan. The loan most likley has been called in. Extensions have been granted, most likley for variation fees. Why was the loan called in? Becuase any loans office who did not call in a loan where the mine has been put on care and maintenance and a CDO had been issued might be putting their job on the line.

My question is this, had the following events not happened would RED have been able to repay the loan?
- poor contractor
- exceptionally heavy January rain
- silt in pit
- unreliable electricity supply
- alleged taking of a dam off line
- failure of the other dam

I think RED would have managed to get by.

How did RED get the loan. RED did a submission. UBS did and analysis, AND THEN UBS DID AN APPRAISAL OF THE ASSETS OVER WHICH IT EVENTUALLY TOOK A CHARGE. Would RED have got the loan without assets to pledge?, probably not.

Have decisions made by directors contrbiuted to the sorry tale of RED5, perhaps. Under the Corps Act director are allowed to make decisions. In fact under the Corps Act if the directors failed to make decisions they could well get into trouble.

I can't comment on the dam issue no expertise in this area, it sounds more of an issue than the loan.

However I would suggest to anyone joining an action that they spend an hour with their solicitor first.

I don't like my losses which have been horrendous, but the loan being called in is not the cause of RED's problems it is the result of them.

Most won't like my thoughts but but your still free to claim against the BOD if you wish.