I doubt he bought the debt. Firstly, he bought the mine - an...

I doubt he bought the debt. Firstly, he bought the mine - an asset of London Mining, not London Mining itself. Secondly, that would more than triple the advertised value he paid which would have definitely been in the main announcements at the time.

And yes, if it ended up happening, secured creditors (smart people like banks, instos etc) would get paid before unsecured creditors (CFE). Assuming this is all UK/AUS laws.