At a guess, it might mean the Uzbeks aren't even paying Calunius, the litgation funders, any of the award because the Uzbeks want to deduct the $10m debt they allege Oxus owes them off the Award first. i.e. there is not going to be any payout to any creditors, even to Calunius (who are ahead of us shareholders in the payout queue), unless a new much larger award is obtained. Am not a lawyer or insolvency practitioner, but that is my reading of it. The prescribed part must be something that the administrators have to do by law as part of the administration process, I wonder?
Item 8 Prospect for creditors.... Reads Under Section 176A of the Insolvency Act 1986, where after 15 September 2003 a company has granted to a creditor a floating charge a proportion of the net property of the company must be made available purely for the unsecured creditors. The Company has not granted a floating charge to any creditor after 15 September 2003 and consequently there will be no prescribed part in this administration. Except to the extent that the Company is successful in obtaining a partial annulment of the arbitration decision and subsequently obtains a significantly larger award in a further arbitration, there is no prospect of funds becoming available for distribution to the Company’s preferential and unsecured creditors, or shareholders.
The last sentence states " there is no prospect of funds becoming available to unsecured creditors or share holders"
They are pursuing the case but not the entire parts only certain parts and BDO cannot give further details. If a larger award or overturn is successful then their may be money to disperse amongst the shareholders. That is my take buy suggest you read The document released by the BDO dated 12th August which is the 6 month legal requirement. The fat lady is not singing just yet. Fingers crossed. Good luck all
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