That statement is so lame. Any company could end up in receivership.
Range will not go into receivership just like that because like most companies they would go into administration first. Any decent administrator could get RRL through administration as a going concern. Going into receivership is down to the judge not the Chinese.
Interesting that the only three options you put on the table are negative, yet you wonder why people seriously doubt your motives for posting on this board. How about another option, challenging Lind's position in the courts which alone would extend the timeframe beyond that of the Core funding. This is not something that either party would want as all it would do would cost both parties money rather than coming to an amicable agreement.
I see there has been a lot of confusion about who said he said she said. Lets be clear again, I didn't say this WOULD end in receivership. I said it COULD and the possibility depended on Chinese. I also said it would play out by mid feb because Lind won't wait. I said this all along. Check back on the posts.
I can tell that my posts although accurate, can distress some holders and it is not my intention to do that so I will just keep it brief. I don't want to keep posting and get into a long drawn out argument with some here. Because people come on to accuse me of all sorts of heresy. Regardless of which process this company eventually falls into, be it admin, receivership or liquidation, the outcome for PIs can only be the same.
Stat demand has been issued and company has 21 days to pay. I see the only likely source of money to pay is Core.
I hope they manage to achieve a last minute resolution and Lind is paid off so RRL can get back to business. I imagine that Lind would be very happy if they got their capital back so I guess around $5m would see them off. In fact, just paying them couple of $m would keep them waiting til EGM and it is probably the lack of this that led them to issue SD.
The actual word for it is overtrading. They expanded in all directions without having sufficient working capital. They had no contingencies for the capital spend on the oil rigs they bought which were in poor condition. Poor due diligence when buying assets and the creaming off of fees by untrustworthy management. Two words cover it, negligence and defalcation (misuse of company funds).
I am very confused how rrl have got into such a mess but thanks alocasia for the info. Phil i assume they may give Georgia away? I don't know who would be prepared to take rrl interest to fund a drill?
Some good sense being written ny Mr Omadawn today - 0938 post in particular ties in with how I see things at present based on recent comms. Roofman - always a risk of something horrible happening but that would seem to be a relatively low risk. Last Q&A (here: http://www.rangeresources.co.uk/framework/documents/displaydocument.asp?doc=1308 - see Q 2 & 5) suggested the GM to approve the Core deal would be back end of March with funds transferred within five days thereafter if it is approved. Possible it could get kicked out of course, but assuming it is approved then there should be no reason why trading can't resume in early April. Could be sooner of course if Lind is resolved in the meantime as Ch says, but it could be argued that some investors might favour waiting till after the GM as the sp may be at the mercy of the wibblers and those with unhelpful agendas if the share resumes without long term funding guaranteed... it could indeed be the long awaited burning of shorters. Oilriches - See above. Georgia a non Core asset so doesn't sound like a priority to hold on to assets like that requiring further cash outflows.
Hi, Just to offer some background to this narrative, your comment on RMP bb re RRL is "You say that but i have an understanding that may be forced to give the asset up if they are unable to fund our free carry drill. why? If they don't honour the farm out agreement they will have further costs to settle to rmp and strait. Greg bandy did say on the November quarterly report that discussion with strait are ongoing to look at a bigger % in Georgia. This may be us now taking rrl 40% off the table to give us 60% interest. note rmp sold out of hrf for extra cash? Georgia can be drilled on a 60% interest for around Â£2 million".
It is common knowledge that RRL has put the Georgia asset up for sale. As an interested party you will have noted in the recent RRL Investor Q&A "Due to the previous unsuccessful exploration results and our focus on investing capital in Trinidad, the Georgian assets are non-core and are held for sale. Range is seeking to restrict any further investments into all non-core assets. Range is currently reviewing its position in relation to further financial commitments to Georgia and will be updating on its progress in due course."
Is this what you meant by you "having an understanding" or do you have some additional info to add? Thanks.
It is not a question of if roofman just when and I guess that will be once the Lind issue is resolved although right now, with the price of oil being so low and Range working hard on the ground to bring up our production why rush to get out of suspension until we have made some real headway.
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