Ann: Independent Expert's Report, page-7

if KML's chinese banks decide to call an event of default and demand repayment of the loans, if we agreed to this variation it means Ansteel could effectively take over GBG at zero cost via enforcement of its security (recourse) to all GBG's other assets.

Ansteel would get whatever GBG is worth ($40m?) but would still be left having to repay $$$$$billions of bank debt by itself. So they'd still want to avoid KML defaulting at all costs.

not sure what rejecting the variation will do...probably Ansteel would be less willing to spot GBG for any future equity contribution into KML