todays trading, page-20

rewind: "One interesting question to my mind is: if the margin lender did not get all their money back what claims do they have over any other assets of AFG, do they just beocme an unsecured creditor or do they just write the loss off?"

Very interesting question indeed.

According to the 25 Feb announcement, those rubicon trusts units were in a vehicle called RST and so was the $70m margin loan on them.

Now if the responsibility for the margin loan was limited to the RST entity, then the margin lender's security value would have been imperilled several weeks ago, and I would infer that the margin loan would have been called several weeks ago.

Which leaves two possibilities:
(a) Allco ( or someone else ) has been putting up considerable amounts of dough to meet margin calls in RST for quite some time now, before giving up today or
(b) Some other Allco entity other than the $2 RST company has been guaranteeing that margin loan in some way.

The margin lender has realised something like $17m dollars by selling those shares today. I don't think the margin lender is taking a $50m haircut on that margin loan. I think Allco probably still owes them another $50m now.