THE Securities and Futures Commission (SFC) faces a counter-offensive in its attempt to secure the assets of trouble-ridden Canwell Forex International. Silver Bound Capital, a company which claimed to have a legal claim over a HK$32 million deposit, filed a writ in court against Canwell yesterday. It further asked Canwell to observe mortgage deeds drawn up between the two. The writ stated that a deed of debenture dated September 9, 1994 executed between Silver Bound and Canwell constituted a first floating charge over all the undertakings, property, assets and rights of Canwell. It further stated that the floating charge was subsequently converted into a fixed charge. A fixed charge creates a legal claim over certain properties, assets or rights as specified, whereas a floating charge does not pinpoint which asset is mortgaged under the agreement. According to company registry records, Silver Bound recently filed a mortgage report made on October 13, 1995, claiming a fixed charge over the bank accounts of Canwell. The mortgage was drawn up only a few days after the SFC inspected the documents of Canwell but well before the regulator gathered enough evidence to freeze the assets held by Canwell. The SFC was only informed on October 16 that Canwell had charged the deposit of $32 million to Silver Bound. It moved to appoint an administrator on October 20 and freeze the $32 million in assets. At issue in the court wrangle between the SFC and Silver Bound is the validity of the charge, as the $32 million deposit is the only asset of Canwell. The SFC decided to seek the assistance of the court to adjudicate on the maters involved in dispute last Monday. However, the judge did not issue directions on the disposal of the $32 million on the grounds that the administrator, Stephen Caswell, was not represented by counsel in court. The regulator has since contacted the administrator, who is to instruct counsel to appear before the judge, probably next Monday. Yesterday's writ placed the SFC at loggerheads with Silver Bound in grabbing the assets of Canwell. If Silver Bound has its way, the 72 clients who are owed $1.5 million by Canwell may not get back their investments. The SFC started investigating Canwell in early October after being tipped off by a Canwell client. It found that Canwell had misrepresented in its FRR (Financial Resources Rule) returns that it had $32 million in assets. In fact, the $32 million was borrowed from Silver Bound.