Assume for the purposes of this question and the next question only that Wecanfixit successfully defeated the King Plaza's challenge to jurisdiction and the case has been progressing in Sydney, Australia. The case has been ongoing for the last 12 months and you have briefed an external firm of lawyers, Wright Hassell, to run the litigation but with your assistance. The litigation has not moved as quickly as it should due to the deliberate delaying tactics of the King Plaza hospital. Pleadings have only just closed. Litigation costs incurred by Wecanfixit already total $300,000. In the last 12 months, Wecanfixit's financial position has changed significantly due to problems with two major projects. The last set of company accounts filed show that the business has been run at a loss for the last financial year. The King Plaza hospital has recently made a request for security for costs. They estimate their total costs of defending the matter will be $1M and are seeking security for that amount. They have not yet filed an application but have indicated their intention to do so. PAGE 3 You are called to a meeting with directors, Botchit and Scamm who wish to discuss the request for security for costs. They want to know what it means and what happens if they don't pay it. If the King Plaza make an application, how will they do that, what happens then and what is the likely outcome? Write a memo after your meeting detailing your advice. Cite all relevant rules, legislation and cases when advising.