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"But going by my numbers, SN’s debt would represent more than 50% of total creditors dues, meaning that any proposal made by SN (probably via new financing), he could vote it through as his debt represents more than 50%. And I believe for a settlement proposal to be accepted, perhaps it requires a simple 51% acceptance from the creditors by amounts owed and not by number of creditors. " It requires a majority (>50%) of the creditors who represent more than 75% of the debt: https://legislation.gov.ky/cms/images/LEGISLATION/SUBORDINATE/2017/2017-0091/CompaniesWindingUpRules_2023%20Consolidation.pdf
Piscator1, if you have a technical problem you have to avoid HL.
I had and could not get into my account. A Help Desk Agents asked where
I was born. My account was set up by whoever and only knew where I used to live
as a child. 4X I was asked the same question and each time I was right and the computer
was wrong. Hackers were after me at the time. My computer problem was not addressed
with concern and I have been treated like an idiot since. I kept the old computer and
bought a new one but only use my computer for research. Why invest on-line while there is
too much crime? The most cautious are caught for there is too much fraud. I missed
RR, ARM , etc. Was left in shock since my account was blocked. No reason was given why.
Deloitte may find out the truth and does not accept a lie.
Monti
Thanks for detailed reply & along lines of what I was thinking.
Will say that I would think on SN being the main creditor then he would have the power on making payments to other creditors. Cents in the $.
Hi A-221 - The obvious question is how has FRC been able to finance all its legal battles over the years when the company has not produced much cash flow from its oil sales? So, if you recall back in the day, both SN and ZM personally extended RPNs (Related Party Loan Notes) which were charged at 10% annually and rolled over on an annual basis for many, many years. In 2017, these RPNs were converted in to equity at 1p a share, when the prevailing open market price was around 0.4p, thereby lifting SN’s stake from 6% to 13% and ZM from round 3% to 7%. I also recall SN’s original shareholding in FRR was c.18% at IPO stage but after the big $92m bond debt conversion in 2015, he was significantly diluted. It is also worth remembering that FRR Directors were never paid salaries as verified by the Audited Account, which were also converted in to shares at the same time of RPNs.
So, what’s my point? One way or another, SN has always had a strong hold over FRR and I believe by him financing the legal bills, he will sit high at the creditors discussion table. And if I had to guess how much accumulated legal costs could be when taking in to account (in no particular order) the Cayman’s fiduciary case, followed by California case, followed by YA cases in the UK and US, followed by the cases against ZM and Green Capital in Georgia, followed by the costs incurred from the Arbitration Tribunal, then i would say $20m plus. But how much money is owed to other Creditors from what we know? I don’t know as we have not seen audited accounts for many years, but let’s compare SN’s debt size to YA’s at $4m, Mourants at $1.3m, and Arbitration at $5-6m. Who else could there be? I think all the vendor finance was extinguished by issuing new equity back in 2017, so I don’t know. But going by my numbers, SN’s debt would represent more than 50% of total creditors dues, meaning that any proposal made by SN (probably via new financing), he could vote it through as his debt represents more than 50%. And I believe for a settlement proposal to be accepted, perhaps it requires a simple 51% acceptance from the creditors by amounts owed and not by number of creditors.
So how much will SN offer to the creditors on the $? I would say 20cents as this is the level OMF acquired the CLNS at but it could be much lower as you suggested.
Finally, worth remembering here that the money owed to OMF, was issued by Frontera International Corporation (FIC) which is subject to its own separate liquidation process and therefore will not be included in the Deloitte proceedings.
Piscator1 - Save all the pages into a word document and then paste those links here.
As SN as a creditor then would that give him a reasonable chance in agreeing to pay say 5 cents in a $ & buy back the part of Frr that just been put into liquidation?
Lifeishard, the book was my inspiration for a lifetime love of angling and hence my two fishy avatars, but it’s been about 40 years since I last saw the film so I must revisit it on Netflix when time allows.
Monti makes a very good point about SN’s likely place in the hierarchy of creditors and I have some more to contribute re Exxon, but I have a technical problem posting here at the moment as the page keeps refreshing on my iPad and everything I have typed disappears. So if anyone can offer any advice on that I’m all eyes and ears, but it might be down to the fact that for research purposes I currently have about 40 web pages open using two different browsers.
Good to find out that I am in good company with well informed, intelligent investors.
Many companies with potential are held back by determined short sellers working in teams.
Those thugs encourage to buy while they sell. If there are more traders who are sellers, then
investors are left with nothing and the London Stock Exchange has a credibility problem.
Tot & Monti
Thanks for interesting posts.
On what you mentioned Monti on SN being one of the main creditors to Frr that would make much sense, as they have stated SN (Frr) are in talks with Deloitte & this would give SN a front seat.
Hi ToT - thanks for posting the Facebook article, and I note the date is 16th November 2023. Also noted that there were some heavyweight US companies attending this event. I assume around that time, FRC team would have been aware (or anticipating) that the winding up petition was on it way from Mourant to the Grand Court of Cayman, yet our man (SN) is at the forefront of arranging this high profile meeting. It specifically says in the Facebook article ‘……….Among the distinguished guests were representatives from America Georgia Business Council , ExxonMobil, Freeport Energy, B1 Bank, Frontera Resources, and Pappas Bros. Restaurants. Special thanks to Honorary Consul of Georgia Janet Moore and President of Frontera Resources Steve Nicandros for organizing this great meeting.’
If SN was personally involved in setting this meeting up, how do you think Exxon got invited (or pushed them to attend as Exxon is a very busy company for this small meeting and a small…….country)?
Nevertheless, SN was being presented as the President of Frontera Resources, but following the granting of the winding up order, I wonder if he is still the President but may be of another FR entity registered outside of Cayman? My own understanding of insolvency law is that any entity (regardless of foreign registration) is if it is majority owned by the Parent company (FRC in liquidation), then it should fall under Deloitte’s purview.
Anyway, what are your thoughts as to why SN+team decided to let the winding up order go through uncontested but is now working closely with Deloitte to return the company to the pre-wind up status? Having thought about it, I now have no doubt that SN has been personally lending the company money to fight all the legal cases and therefore racked up significant debt, becoming the largest creditor in FRC.
If this scenario is true, it will entitle him to be in the middle of all creditor discussions/negotiations as well as vote through any proposal agreed with Deloitte. That is indeed deep and advance thinking by SN and team. May be the jigsaw pieces are starting to come together but we will have to wait to see the full picture and where the loyal army of retail investors stand in terms of ownership/dilution.
Disclaimer: Monti is an ‘out of the box’ thinker and the above is my assessment only.
P.s. great to have the legend back with important research contributions, and may be also a good omen for us imho (@tot). Also the resurfacing of the ill-type on this BB may be another good sign.
PS , T.o.T, get well very soon, great to have you back, feet up and super sleuth the movie “ The old man and the sea “ if you haven’t seen it, your in for a treat, Spencer Tracey one not the others.
Many thanks T.o.T, super sleuthing at it’s finest.
GLA real holders
Piscator1, I am the most ignorant Mug but at last have
the time to study and learn, 60 years too late .
You invested for good reasons and your comments make sense.
Deloitte has an excellent reputation . I sent a short comment
for my interest is the reputation of UK Finance which is in need of
common sense regulation and less Woke. On-line invites crime.
Talking of 'divs', 1 sausage... 🌭. A real div or is it just a d!ck?
Yup and real although do like one day rodneys point of view
Yes, so have I. He told me ‘whatever you do, don’t sell your shares’. LOL!
Yeah it’s dusty I’ve seen him face to face
He’s quite happy to host meeting with Georgians and Exxon people but can’t speak to shareholders he’s shunned for 5 years in case he gives anything away to dark forces. like I can’t saying , you couldn’t make this rubbish up
As ToT has hit the sack… yes I believe it is Dustin.
Hi ToT,
Is the guy sitting to the left of the lady in the pink jacket Dustin Aro? (from the Facebook link you posted)
GS
This article also indicates some diplomatic activity between the US and Georgia, which might possibly be paving the way for a significant investment by Exxon: https://agenda.ge/en/news/2024/381?fbclid=IwAR2aBsRyb-jyFsuzn1k9QWRqwV8t41FUcc4t0clEZrwCVsxaAGfaEQUrUsc_aem_ARbnMWlcUL_XE3nGG3ZuMjUNdt1j7TSrd2C9mBGGG-XxkRLx20WLZYZhHo-iPHNgq6U
It’s worth noting that CNPC the second largest E&P company in the world by volume of hydrocarbons produced is now present in Western Georgia through a subsidiary. That might just be the wake up call that Uncle Sam needed to take a closer interest in Georgia, a delegation of Georgian Ministers and their civil servants having recently spent a week in Beijing hammering out a strategic agreement.
That’s me done for now as I’ve got the lurgy from hell and bed is beckoning.
Tot.
Here’s the link to the meeting in Houston that I referred to: https://www.facebook.com/100064752634592/posts/pfbid033giFd7Uj76prxXmBD2ZMKh4nfRP9NiBkj2hS3XAWPqsYXZGcGURizoReygg2PhBrl/?
Note that SN was hosting the meeting and I think that Exxon’s presence is certainly telling a story.
Soss, you should recall that when I reported back from Georgia in 2017 my report could not be described as ‘glowing’. In fact I had to report that they had yet to start testing the UD 2 well, and Zaza explained the problems they experienced with cavings in the uncased Soviet era well bores.
Having said that I was impressed with the pristine condition of the gas processing plant at MK and the metering plant where the pipeline joined the regional gas transmission network. I can but hope that area and the compound and producing wells at Taribani form part of the 1% retained following the arbitration and that the PSC for that area has been transferred to FRR US.
The recent meeting with the Georgian Ambassador and Exxon in Houston
does suggest to me that there is still plenty to fight for though, and if Exxon were to pick up the balance of Block XII and go into a JV with FRR based on the IP they had built up over many years it gives me some hope that I might yet see some return on my investment.
Some on this board got caught in ignorance.
In a super market we buy what we see.
Stock markets are a mystery/misery/tragedy.
Too many crooks in this game.
mainly on AIM.
"All I see are myriad pointless questions of people who cannot possibly have the answers".
No memory then gotreal. You have my sympathy. Good luck.