former chameleon md found guilty , page-5

Following on from the Deed of Company Arrangements put in place for CHM to stop it going into liquidation ASIC have examined the issues and the Barnes Roberts case was the result.

The Deed puts a line in the sand and allows a company like CHM to move forward.

The issues are about ASX listing not if it should ever have been formed. The ASX issue is what is at the heart of the Barnes Roberts case and not something the judge would turn his mind to in the major case.

A deed deals with a companies creditors but does not extinguish claims CHM may have against others.

IMO CHM was not used as the vehicle for the IO transaction as Barnes had made such a mess. It did not stop Barnes and Grimaldi using CHM through taking cash, issuing and selling shares and diverting deals to raise cash in Nicu. They just thought by throwing it into liquidation the trail was never uncovered.

On the value arguement if Spiderman puts 1 cent on the payout then you can add the now freed mining grounds, MMX shares, cash in the bank and cash coming from MMX for Koh and Evans costs then current prices are reasonable.

I think the value of the claim is understated as if MMX wish to leave it in the judges hands and CHM are successful they could end up with Crosslands shares.

I think based on the sixth respondent being brought in they may now even want an interest even further up the food chain than crossland shares.

This would end up becoming an annuity style income stream for CHM.

Anyway half way through Dec so Feb is coming.

I wonder if any MMX shareholders are nervous about potential litegation from MMX shareholders if they get an adverse finding.

I am sure there will be plenty of ambulance chasers in the US who if the price dropped due to adverse finding would sue if they bought on current presentation which has failed to disclose any information on existing court case.

What if Harbinger bought as they formed the view that we have relied on MMX representations so if the price falls we can litigate so we have insurance. We will win if MMX are right and if they are wrong we will sue for losses.