the hedge, page-4

The hedge died with Lehman brothers CC on Sept 15 2008. At this time Aus gold was approx 950. If Aus gold fell to say 700 average over course of year, who would pay NGF the 175 times 20000 oz per annum. Would the administrators dip into their own pockets. Just because the derivative moved against NGF does not mean they are liable as their was no counter party covering the other side of the hedge. Cannot have heads I win, tails you lose.