Report by administrators, page-3

the stock price was heavily sold down in the last 12 months. The selling severely depressed the share price and made it impossible to raise capital at a reasonable price.....this severely impacted the ability of linc to recapitalise out of the debt. This heavy selling may well have come from hedge fund short sellers. They would have needed access to scrip in order to deliver on their short sales. Quite often this scrip can be provided by those firms that take the shares as collateral for non recourse loans that they make. Directors should not be allowed to post their scrip as collateral in non recourse loans as it can have the effect of fueling the short selling. And it is also not transparent to the other shareholders what is happening with the major ownership of the company. There needs to be an investigation into the borrowing activities particularly of the directors to confirm whether they had posted their linc shares as collateral for loans and subsequently not disclosed this to the shareholders.