I see it as a positive result as I have taken the time to read through the judgement which I guess as it runs to more than a few lines got a little to much for you.
In relation to the financial services licence issue its interesting that IMF Australia Ltd holds a licence. Go to ASIC and do a search. So one of our largest litigation funders in Australian believed they needed to hold a licence but the Singapore mob didnt.
If CHM had won on that on they would of got away with just paying the $6 million.
If you read the judgement CFE which weirdly is named as a defendent got what they wanted which was for the funder to account for costs to date and that they could discharge current facility and replace with the new CFE facility.
The judge has ruled that funder gets its $9 million termination fee plus legal costs and that is it.
This is the deal CFE contemplated as the $6.5 million plus the $2.5 share issue gets this amount of cash together.
As to CHM being broke last report indicated that they had cash or liquida assets and even Glyna concedes CHM will have some form of win and if MMX are trying to settle they must be thinking the same.
Therefore all of the cost securities will flow back to CHM further boosting cash reserves.
CHM Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
