So MOL and Genel are better setup, better funded, and generally more stable than GKP? Is that news? This is precisely why the KRG should be paying those arrears a bit faster than they are doing at present.
"MOL is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It has minor renewable energy activities in the form of biofuels. It has operations in over 40 countries worldwide and has nearly 2,000 service stations in Central and Eastern Europe and it is a market leader in Hungary, Croatia and Slovakia. MOL's downstream operations manufacture and sell products such as fuels, lubricants, additives and petrochemicals. The company's most significant areas of operations are Central and Eastern Europe, Southern Europe, North Sea, Middle East and Russia."
Wasn't it MOL who recently borrowed money from Mr Market at a very low interest rate (can someone please remind me how much and what rate they achieved???).
The current BH's will surely know MOL's position (and the position of similar companies too) and will therefore seek a new favourable rate which is both suitable to them and relevant to the market rates which are currently available. Otherwise, JF has the option of bailing out and finding new backers with new funding at far better rates than we are currently tied into (which he may have already done through his MOL mates???).
The options for a JV/Sale of the company are further strings to JF's bow. The current BH's may not know what offers have been made for a slice of GKP (if any) and as such, can only value a new loan based on current market rates and the GKP lending risk.
I am sure that the MOL deal is not unique in today's market and therefore, one would assume that the current BH's are not in as strong a position as some may think..
It could be that JF is seeking current BH agreement/a new offer before going elsewhere (we used to call that business loyalty, first crack at the whip). At the moment time is on JF's side so I don't think that he will need to go cap in hand to the BH's - not just yet anyway.
The only obstacle that I can see is the need for new near term funding to achieve 55K bopd.
The current BH's have a contract with GKP which is still in place. The BIG question is, do they want a new contract which is less beneficial than the current one but carries the same amount of risk.
For somebody who hates the company and its prospects, you seem to know an awful lot. Its like me, as a Man United fan, being a historian of Liverpool FC. A bit pointless really. You clearly have other agendas here.
But ultimately, the monies ARE owned to us, absolutely they are. Also, nobody seems to have mentioned the Shaikan BIRs for a while too. Valuing this company at 50 million quid is absolutely bonkers, and the only reason that the bond holders would insist on DFE, is because they are confident that this will turn around before long, and even then, the KRG will have a massive say on who owns and runs this company in terms of big shareholders, partners, operators etc. For me, the only way that the bond holders are taking control here, is if they are in some way connected to big oil or the KRG.
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