Ill cut to the chase; the loan is what ozzies call a 'margin loan/lending' facility.
AS shares are 'free carried'. Gets'em 4 free. He then lodges these as collateral to back the margin loan. The lendr will then lend $$$ against the 'specific' stk in order to purchase more stk on mkt. Thats what AS has done ovr the yrs. All margin loans r based on an LVR. If the loan-value-ratio drops below a pre def limit then the specific collateral lodged no longer covers the current stk value on loan.
To cure the deficiency the m/lendr will ask for add. coll which can b stk or cash. Due to the falling stk price AS loan fell below a pre defined limit (effec $0.70c). AS has no money nor stk to cover the def hence the default.
He gets no cash or no benefit from this as implied. In fact, his stk would have been sold to cover the debt trigger event. He gets nothing. To b clear he gets no stk he gets bo cash.
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