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Hi Ziggy - Thanks for your extract (15.11 yesterday) - I hadn't seen it before. The liquidators do not seem to have found any clear evidence of illicit activity - the extract is full of vague uncertainties - MAY this, POTENTIALLY that, PURPORTED something else - nothing to suggest that FRR are likely be penalised in the near future.
Not all that long ago, if I remember correctly, FRR's main office was moved so that it was next door to the office of lawyers who I think were specialists in liquidation procedures. Seems our boys have learnt well. Here's hoping so!
Re your previous post :
Does not look FRC took part in process based on extract below from DTI submission to NY court below.
......... 46. The Liquidators are concerned that the FRCC Directors may have directed FRGC to
take certain steps immediately prior to the voluntary liquidation, potentially in furtherance of evading the implications of the voluntary liquidation. These steps also impacted the Arbitration.
47. Pursuant to an agreement dated April 13, 2019 (the “Farmout Agreement”), just a few
weeks before the voluntary liquidation commenced and the Liquidators were appointed as JVLs, FRGC purported to assign all rights, obligations and interests in the PSC to Frontera Resources US, LLC(“FRUS”), a Texas limited liability company that is an affiliate of FRGC (the “Assignment”).7
48. The Liquidators did not learn of the Farmout Agreement until nearly a month after the
commence of the voluntary litigation, when they received information from Akin Gump. The FRCC
Directors subsequently provided a copy of the PSC and the Farmout Agreement.
49. The Farmout Agreement and accompanying documents provided information in relation
to the consideration for the Assignment. Based on the limited information provided, the Liquidators cannot determine whether these transactions were arms’ length for fair value, or potentially a questionable transfer of the assets of FRGC (and thus FRCC) to a related party, all concurrent to the voluntary liquidation of FRCC.
I should note there is a significant difference between FRGC’s
Counterclaim in the Arbitration of $3.5 billion and the consideration FRUS purportedly paid for 95% of FRGC’s rights and interests under the PSC under the Farmout Agreement........
Hi Ziggy - Thanks for your post of 21.42 yesterday.
As FRC is (was) above FRCC, I assumed, perhaps wrongly, that FRC could take the licence from FRCC and remove it to a more secure holding, provided this was done while FRC still controlled FRCC and before OMF acquired it; probably when SM and SN were surreptitiously preparing for Hope to take over FRCC and leave his directorship. If this was the case then DTI would have no control over the licence as it would no not be a part of FRCC.
Earsbern ...re your 10.54 post
I have been worried since DTI were successful in obtaining Cayman court supervision re liquidation.
Trying to put assets out of reach of creditors is what companies / directors do regularly when the house is about to stormed.
Its a given for any liquidator to examine transactions in the period close to liquidation in relation to asset moves , money transfers etc and attempt to reverse any actions deemed illegal under insolvency laws.
I do get mixed up with the company set up but presumably under licence conditions FRCC are allowed to sell to SM or farm out / JV etc and that was the talk amongst us all prior to Dec 18
Consensus seems to be that if asset is out of company then licence would revert back to Georgians and all sides except them lose.
On the back of this many are saying nothing to be gained by DTI ( some say Hope ) in perusing asset .
I do agree with Oopsi post earlier that possibly Hope has been outfoxed re asset removal without breaching loan agreement .
However it is not Hopes agreement that I fear .......its was removal in breech of solvency law .
Timing of removal and / or fair value are issues that DTI have referred to in their submission to NY court that they wish to investigate .
So here is my worry:
DTI are liquidating FRCC who held asset within its structure .
If they are successful in voiding asset transfer it then reverts back to the book of FRCC structure.
So if put back in FRCC what would have changed re licence conditions, it would be as we were prior liquidation process starting.
The entity of FRCC is still in existence , it has not yet had its affairs wound up and presumably is still legally free to undertake transactions re its assets with regards to sales.
In other words if under licence agreement FRCC were able to sell asset prior to 1st May 19 would the same not still apply if it regained asset now .
Its not Hope who would have the asset to sell , its not DTI either ...its still the licence holder FRCC who would hold asset and subsequently would be selling it as per licence agreement allows .
So nightmare scenario.......DTI recover asset on behalf of FRCC , who then sell it to SM , DTI oversees distribution of funds to creditors etc (with no trickle down to us , we are not shareholders in FRCC ), final meeting held , wind up of FRCC and its dissolved.
Above is my take on a possible scenario , happy to be corrected and told where I am worrying unnecessarily.
Gosh I wish I could see some real long term blue sky soon. The golf course is like a swamp and my alternative revenue stream of taking the scam money has dried up which has curtailed the pie buying.
As a fully paid up member of the middle management tummy rubbing club we spend a lot of time risk assessing and ensuring we discard the chaff and concentrate on gathering the wheat. So decision making is based on what is known and what risk the unknows are. Similar to posting you can either base on facts (not may of them I know) or logic but make it clear what you base your opinion on.
Buying/dealing in shares is a risk as those that do accept the risk. Smart ones never overstretch and ensure that any losses are manageable and will not cause other (family) harm. Taking a gambling position such as a spread bet is a risk too far for me personally as if I get it wrong the loss could impact more than myself.
Will this share come good I would put it the high risk of failure pile
However, FRR is defying logic as it is by all intense and purpose bust, no known revenue, small retained workforce (has to be one due to the gas plant and small production wells, if not GG would have to step in to ensure HSE is not compromised) and CC escalating costs (Inc. Arbitration). So what is keeping the US Gov on side, the GG not just taking B12 and OMF/Liquidators fighting on.
It is not based on blue sky strategy on what B12 might have but the smell of MONEY.
I know how much of the stuff I will be down if this officially goes belly up, annoying but not life changing for me (stuck to my investing rules). Can those that short or take a gambling position do the same?
I hope this come good for all LTH’s and those that took a different investing route how will you explain this to your loved ones your potential losses.
For what it’s worth, Regdiks post earlier is spot on in terms of trying to analyse the complete legal position. With only ad hoc pieces of documentation, trying to make sense of it all is nigh on impossible.
When the previous litigation between the parties ended and Outrider negotiated “bullet proof” provisions into the contractual documentation, I don’t think Hope ever envisaged this would become such a legal mess with complex contractual and conflict of laws questions requiring lawyers in multiple jurisdictions. This is not a straightforward matter where Hope could have seized assets in previous matters he has been involved in. He will know that any action needed in Georgia will be a monumental headache (and will no doubt be advised as such). He has the personal guarantees in Texas and that looks like the best bet at the moment. I wouldn’t discount an action by Hope against his lawyers for negligent drafting if it turns out that the transfer was “technically” permissible or for advice given regarding enforcement of the contractual arrangements.
As many have said before, FRR may be in the mire but so is Hope. The reversion of the asset to the liquidators is years away, the chances slim, and slim has just left town. Those with full sight of the papers, including Kawaley and Seeborg see it and hence the suggestion for a negotiated settlement.
Good luck there mapp.guess as always it depends whether you bought on a spike or lower. I find trading part of a holding hedges so whichever way the sp goes you are not too disapointed but lets be honest there are very few aim shares that dont retrace quite sharply from a good rise .just a case of gauging when is a good time to start selling .with gold this could be the start of a long bull run .
My late husband was sucked into AIM by dodgy brokers
and FRR is another share he should never have bought.
This pile of rubbish keeps me busy . GGP was my "mistake"
but I am no longer as ignorant as I once was. I am learning fast.
Timster, that also crossed my mind with the corrupt organisations out there. Will continue to pray that this comes good. Also, if there was no oil/gas then FRR wouldn't be fighting this, they would simply fold and hand the block back to GG. Only a matter of time until this is sorted, can't go on forever. For now will just have to keep on paying the minimum payments on the credit card, hopefully can hang on until this is resolved. lol
Seini, I have been in GGP and stuck it out. LTH. I just sold 200. I need
some money to pay a bill. Holding on to the rest GGP. I am a shrewd
investor at last? I invested too much in FRR, in ignorance. Gold is a hold
if one is in the right share. Most AIM shares are rubbish.
conspiracy theory perhaps GG wants the liquidators to get at the asset no need for arbitration to continue then...
cant wait till all this **** is over, whatever anyone says on here the facts are we will either be dead and burried and we as shareholders will never hear from FRR again or the company survives and we may be contacted by FRR
Mrs mapp,you will find on aim where death spiral financing is used to stay afloat ,absolutely rampers and shorting are part of the same process.trust nobody on these boards use common sense and personal research .Or invest in a sensible share where you get dividends and steady sp growth. What made you invest in aim shares and frr if you dont mind me asking ? I dont believe a proffesional advisor suggested an old lady should invest in an American company with caymans links and listed on the london aim market .
If FRR can pay hope the interest and loan notes then why does it matter where the asset is hiding? I just don't understand, pay the money and get rid of them. However, if they do grab the asset doesn't it go back to GG?
well this is a strong buy in my opinion
ferrets fighting in a sack ..it has to be
Shorters cause much pain on AIM. Investment needs support
and shorters demolish. They crucify and often lie.
Seingred, exactly. Even ODR is being called out for being my alter ego when you couldn't get anyone more balanced. They all go on about shorters being worried when the obvious reason is that they are all so sh*t scared of this going belly up that they can't process any information logically and can not cope with any one who doesn't follow the blue sky party line.
Tsbs,you say it is a bb for views but lets be honest only blue sky posts are really tollerated .It is obvious what this document means.
This process has a long way to roll yet and who knows where it will end .maybe we are going to all be rich.I definitely have no issue with that scenario but I will view view any released info with common sense.
I was worried last night when I read about the latest liquidator's move in NY. I worry easily, but shouldn't have done. When Hope took over FRCC he was, IMHO, falling into a brilliant trap, baited by ZM and SN, to get him off the BOD. And that's the reason I am now relaxed - it was a trap set by these very clever operators, they knew what they were doing, IMHO, and I'm sure that they wouldn't have left anything in or around FRCC which would cause them problems when it was eventually liquidated (as it was bound to be) and, (in the unlikely event that they broke any rules in the process(!)), I also doubt that they would leave any evidence that would stand up in court.
Let's get NY out of the way. It will leave SH and OMF sidelined and clear the decks for the arbitration to be completed. The sooner, the better.
Regdik, I have the time to learn at last but many of us
investors have jobs and when you do a good job it is
impossible to be a trader. Your comments are refreshing.
B12 is reality and not imagination.
Ah, you just gave yourself away with your last sentence Regdik.
No one not even Oppsi can fully understand what is going on with all these interlinked CC’s. From the side line there seems a lot of inconsistencies, information gaps and a strong mix of international, jurisdiction and commercial law in play.
Originally split the LtO without the full backing of GG which looks like it required a retrospective action to gain agreement.
What we do know about FRR Is that lawyers/litigators have lodged a lot of documents but until the presiding judge rules on these they are just one sides interpretation of the law (unless the lawyers jointly submit an agreed action).
FRR have gone through a number of respected law firms – who I expect were uncomfortable with FRR’s ducking and diving and sailing close to edges of the law. I doubt that was the original plan but served a purpose of buying time. They may have found a more flexible firm so FRR have embedded themselves in a PO box at a top asset protection lawyers premises.
Interestingly every Judge seems to be advocation arbitration rather than a full CC
Litigators want discovery of documents from a number of FRR entities (but how many of there documents are lodged in Georgia).
Final testing of the asset transfer by Georgian LtO has to be in a Georgian Court of Law. (if you think this has ben drawn out then just wait till this International part starts)
Litigators are certainly racking up their costs so must be comfortable that they can recover most of them (if not all).
However, without a successful conclusion to the GG/FRR Arbitration case all of the above is just noise. So continuation and escalation seems to indicate that those in the know must think that a settlement is agreed and there is something worth chasing (and it wont be the licnce).
Just trying to be logical and not like others put my view out there as fact and that the “game is over”.
Tsbs, I've never said there is no oil flowing, just that the amount of oil as put forward my Madpunter is based on the O&G auctions, something which Mole said was not the case. Even the FRR website says that the oil is transported to the export markets via the train, hence the reported action by the protestors. So yes there is going to be oil flowing and revenue generated from that. How much? Well, we're still waiting on those pesky flow tests!
revenue from the asset siphoned off lol
which is it star
frr have revenue pouring in from the wells drilled so far as madp theory
or nothing is coming out of the wells to create a revenue because theres no employees to operate the wells
Mind you I have seen a photo of zaza, steve and zazas son in overalls covered in oil working hard at the well head
take your pick
ODR, yes it's the liquidators following due process. However, if the revenue from the asset has been siphoned off to a bank account outside of the liquidators control, then that would be a credible reason for the request, imo.
sensible post tsbs
B-2-0 does talk absolute ****e though, much like a slightly more factual Rainbow ;)