where is asic, page-6

http://www.smh.com.au/business/cutprice-boral-still-looks-expensive-20100708-102ed.html

Another Australian company doing battle with soft economic conditions in Britain has struggled to respond to a fresh batch of questioning this week. Healthcare software developer iSoft is attracting attention for a $30 million equity line of credit facility sourced from the US hedge fund YA Global.

The facility allows iSoft to issue shares any time in the next 60 months in tranches of up to $2.5 million.

So far, so good. But facilities of this type have brought plenty of companies unstuck. iSoft shares are already down more than 70 per cent for the month after announcing a massive downgrade, and if it turns out that YA Global doesn't have long-term investment intentions, selling by the hedge fund could send the shares sinking further.

Not helping perceptions is YA Global's track record.

Locally, efforts to extract full value from an investment in Compass Resources saw YA Global team up with the Compass chairman, Gordon Toll. They asked shareholders to approve a proposal that $70-odd million of debt be converted into a 95 per cent stake in the explorer, once valued at more than $700 million.

Internationally, YA Global has attracted attention for initiatives including a failed attempt to push into liquidation the US biotech Cobalis, in which it held some convertible notes.

Not that any of this concerns iSoft's chief, Gary Cohen. Responding to questions about the facility, he was quick to differentiate YA Global's equity line of credit offering from its convertible note structures.

Indeed, according to Cohen, large Australian companies including ''Fortescue Metals and the Australian Gaslight Company'' have previously called on the services of YA Global.

Apparently not. A spokesman for AGL yesterday noted that nobody currently working in the company's head office had any recollection of AGL ever having an association with YA Global.

IMO Gary Cohen's credibility is questionable and deserved to be scrutinized. He needs to do some research before coming out and saying stuff that is "not factual".