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Not sure how significant excess funds are dealt with in these circumstances but I think Maples ( on behalf of Hope ) are the sole shareholder of liquidated Co and we no longer have any rights in that Co .
New York/ Caymans is key as any win in Georgia then needs to be retained against that action hence as I have previously said I very much feel Zaza’s ....removal .... along with Levans step down is a tactic to frustrate FTI and not an indication of an imminent deal .
A deal with Georgia now on the asset would gives Hope a defined prize to financially justify his pursuit of nullifying any asset transfer out of FRCC .
Yes, agree Phil, if the asset is transferred back the liquidators would use the asset to satisfy the creditors, one of which is Outrider, though there are likely to be others as well. How they achieve that and how much that would generate I'm not sure. Mole would probably have a more enlightened view on that particular aspect.
Thanks Starage, MP & Mole, it appears the clock is indeed ticking that FRR need to sort something out before the New York case decides if the asset should be moved back and hence to the liquidators. That seems to under the New York court to decide as I doubt the GG are going to press it as an illegal move now that they have backed down from the Arb ruling. I'm guessing the Arb process and subsequent dispute tied FRR's hands in terms of deals or new finance, whether that now being largely out the way unties their hands is still to be seen I guess. Possibly Zaza etc were playing for time hoping to generate enough revenue from the oil sales over time to pay off the $48 million or at least the defaulted payment to date.
I can't see the New York cases going well for FRR but I'm no expert on that. My thought would be that it would likely be the asset gets moved back if the New York case goes on. In that case though wouldn't the duty of the liquidator be to sell off the asset (block 12) to get the best price possible, pay Hope his $48 million from it an leave the rest in FRR? As I understand it the GG only get it back if FRR as a whole become insolvent. So might even this bad case scenario mean Frontera shareholders finally see the asset sold and a return on their investment?
I said ‘ The arbitration ruling, if you believe the GOGC version, stated that this transfer was illegal‘. How is that twisting the facts? Here’s the link that provides the evidence , see 4th paragraph https://www.gogc.ge/en/article/-frontera-refuses-to-disclose-the-arbitration-tribunal-award-and-keeps-spreading-false-information/481
I also never stated California was an appeal. You are getting increasingly desperate to try and silence anyone who disagrees with you, this time with outright lies.
Phil - IMHO it doesn't matter 'IF' the transfer of Block 12 was illegal, as any deal, whether for the whole or part of Block 12, or any loan, that results in the clearing of all debts , will be classed as a CRS (Civil Regulatory Settlement). A CRS will then result in a waiver of any criminal charges 'IF' the transfer was illegal. Also, 'IF' the transfer was illegal, the GOGC could have blocked it, resulting in the asset remaining in a company which is being liquidated. The GG would not have had to wait until the arbitration result to take back Block 12 under those circumstances, as it would break the terms of the PSA. Furthermore, 'IF' the asset was illegally transferred, then why didn't the GG use this as an excuse after the arbitration result, when terminating the PSA? Plus why did the GG reverse their decision of the termination of the PSA 'IF' the asset had been illegally transferred?
As usual SR is twisting the facts. The California case is not an appeal, as the case has not been heard. The ruling in the Cayman's was only on the injunction to stop SH/O getting hold of the asset. Also, this ruling was prior to evidence from discovery in the fiduciary case.
Thanks Starage, so yeah the New York case sounds the worse. I'm guessing that Frontera should really do a deal one way or another as soon as or get a loan to pay Outrider/the liquidators. Even still if they don't hasn't the field been proved up to be worth many times more than the $46 million that Outrider is owed, surely plenty left over for shareholders?
Phil, in terms of the court cases, the Texas case where Outrider are suing SN/ZM is irrelevant. The 2 other cases are more important. The California case is where Frontera are suing Outrider for damages over a breach of fiduciary duty. This was originally instigated in the Cayman court where the judge did not find in Frontera's favour but allowed Frontera grounds to appeal. Frontera then opened up an identical case in the California court which has been rumbling on for ages and there is a trial date set for some time in 2021. If Frontera win then they could win significant damages from Outrider to help fund further exploration. The other case is the New York case where the liquidators of the Frontera subsidiary that held the Block 12 asset, are endeavouring to secure the asset that was transferred out to Frontera US subsidiary. The arbitration ruling, if you believe the GOGC version, stated that this transfer was illegal, so the possibility is that at some point you will see something in the NY case which confirms that, and essentially the asset then comes under the control of the liquidators, to be used to pay off creditors etc, which Outrider are the biggest with $45m owed to them. If that happens then it's the end of the road for Frontera in my opinion. Others no doubt will tell you the court cases are irrelevant and there is a deal going on behind closed doors etc etc , but it's all just wishful thinking imo. At some point we'll find out who is right and who is wrong.
Thanks Starage most appreciate you clearing that up. So in that respect for us shareholders it's not as bad I thought a while back when thinking it was Hope trying to take the whole company though I guess it could lead to that. FRR no doubt still has to pay the Outrider loan off at some point and the radio silence means we are unaware if FRR are getting enough money in from the Oil to cover that. If not I'm guessing a deal would be best with a SM or just about anyone as a buyout or JV to tackle that one, that or a loan on more corporate terms from someone else I guess.
There are a number of court cases on the go. The Texas case is where Outrider/Hope are suing SN and ZM personally (not Frontera) for personal guarantees made in relation to Frontera's non-payment of Outrider loan interest. There is a bit of debate about whether Outrider are suing for shares or cash, but either way this court case doesn't affect Frontera, even though Frontera's lawyers are representing SN, but now, no longer, ZM. The personal guarantee that SN/ZM underwrote the interest payment was 500m shares, but again they were from SN/ZM's personal holding.
Are we sure Zaza has actually left Frontera. In the stuff quoted below from Monvant there seems to be a fair few question marks. Could it be that the tone is somewhat satiracal? That they are saying that because they have had no reply back from ZM they are taking that as him no longer being associated with Frontera and must no longer be CEO because he refuses to correspond? Basically the same as we get.
Starage has said that what is at stake is ZM and SN's shareholding in relationship to their dispute with Hope. Is it try that all of the dispute with Hope is about what they guarenteed in terms of their shareholding in case if a default/loan terms? That are shareholding & Frontera as a company would remain unaffected?
Anyway my thought of the day today was as GG gave way on Frontera retaining the license area due to pressure from immense the US then could it not also be likely that they gave way on the rest too? That at much the same time they would of given way on blocking any JV deal/transfer of asset, etc. To my mind it would have been the ideal time for FRR to say, 'by the way US can you make sure they back down from blocking any deal also'. The GG having caved in to FRR retaining the land under the same pressure could have likely conceded other areas such as blocking a deal also so as not to antagonise and alienate the US further. My thought is the GG could have we'll have folded on all of this.
I think FRR had advice that regardless of Arb outcome GG couldn’t touch asset as stated in the J.J Carter letter.
ODR - The arbitration only resulted in the GG getting the land back that was not explored and the monies owed for licencing. If the GG and FRR were negotiating a deal, then I doubt that the arbitration would have been mentioned by either side, so that they wouldn't rock the boat. FRR also dropped their $3.5bn counter claim, so there appears to be evidence of a conciliatory tone by FRR. Therefore, it is consistent for FRR to adopt the same stance by failing to provide evidence of obstruction. Otherwise, why fail to provide evidence of obstruction, especially when there has been so much in the media, since the arbitration result?
Was the arb even a big deal though? FRR 'lost' and still retained the prize asset. Sounds more like sideshow
Madp: so please correct me if I'm wrong but your theory is that when the arbitration tribunal said to FRR, on a number of occasions, "provide evidence of obstruction", at that point the GG said: "don't provide any evidence as we are offering you a deal". So FRR ignored the arbitration tribunal... Oh yes, the one instigated by the GG to take FRR's asset, and let them find in favour of the GG. Then the GG said "ahah! Got you! We were only kidding".
I'm afraid you are completely deluded with your theories.
Also in passing, the reference to the two SMs is only from Zaza so I think that suggests that maybe we shouldn't be placing too much faith in that story ...
SR posted 'If that's the case, why did the arbitration panel, when requesting Frontera to provide evidence of the obstruction they claimed, receive nothing from Frontera?'
There's plenty of evidence of the GG obstructing US companies, which has been highlighted in the media for months by Zaza. Zaza has stated that the only hurdle was getting the extension of the PSA past 2027, plus that when the two CEO's of the SM's went to Georgia, the GG wouldn't meet them. IMHO the GG pretended to strike a deal with FRR to prevent the evidence of obstruction, as FRR wouldn't want to provide evidence at that time if it could derail a possible deal.
My lot? You're fantasising again EkXoc I'm afraid. I'll remind you when we get the next New York update.
The liquidators will never get the asset, it would go back to GG before then besides it will be sorted one way or another before any of that.
I know your lot put all your hopes in the court cases and its pretty clear the geopolitics have caught you with your pants down. Its funny how things play out.
I see lushanenko has not managed to gain control.of Belarus. GD must be sweating, how much unrest can putin realistically deal with, he'll be facing unrest at home soon enough.
I'll think you'll find it's the liquidators. Keep watching New York.
Your weetabix is showing again SR. WHo is sitting on the 1% of the block with massive value, the losers of the arb? Just need to sort the PSA and there is more than one way that can happen. NASTROVNIA
Lol. Chuckle time.
How would it have helped if they did? FRR won the arb anyway.
If that's the case, why did the arbitration panel, when requesting Frontera to provide evidence of the obstruction they claimed, receive nothing from Frontera?
ExxonMobil was in Georgia in 2018 discussing development of natural deposits, Schlumberger took three blocks that year as well, as has already been stated SR the obstacles the GD have thrown into the works have greatly increased since that period, things change SR its a very fluid situation. GD are trying to appear western facing and its really only very recently their true colours have been exposed something or someone forced their hand.
If that is your belief then why did ZM tell shareholders at the face to face meeting in Oct 2018 that the politics was not an issue? Do you think he was lying to us or that he, as a Georgian, was naive about the situation?
It all comes down to who is calling the shots in Tblisi.To clarify my view just so no one accidentally believe SRs words which at the last count were that I only believe what I want to happen.
GD win election. Game over for asset, SR gets to pontificate over court cases till the cows come home. But asset is likely to return to Gov one way or another though cant entirely rule out an ace card such as evidence of fid breach etc so there is a chance FRR might just end up sitting on the 1% for next 7 years.
Opposition win high likely hood of a deal as part of repositioning Georgian as central player in Europe.
GD deal before election to win votes and maintain some sort of Russian influence in country and as pointed out, this could involve Russian oilers. The sudden exit of zaza and the cease fire in the media do add fuel to this possibility.
The court cases are not going to affect any of this they are just about battling over the scraps if GD retain control on all hallows eve.