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Thanks Monty
so Liquidators are doing what exactly
Looking for any assets, which are basically limited to a PSA we had. So are they looking to get it back to sell on, or are they looking at it getting reinstated, reversing liquidation and setting a deal to recover money with a payment plan?
None of this is normal!
Do people still belive we will get our cash back or more. Is that still on the cards, if so how?
I feel that it's all gone and I wonder why there was the fight to survive.
Thoughts
Pyrotech - there is no block as the PSA has lapsed and returned to the Georgian authorities, so no value and therefore no option to market it for sale. Infact, you could argue, that the Georgians have held/managed the block for a number of years. The hope was that production at the Taribani was still ongoing and FRR’s share of oil sales used to pay down Arbitration costs, but I don’t think that is the case as amount owed to them is unchanged around $5m. The wells are probably shut-in. The other question I have is on the Mirzaani oil field, which was producing stable oil of around 180bpd. Was this field returned to the Georgian too? And then you have the MK gas field, which included the testing on the Udabno gas well. Whatever the case, this is all academic until the PSA is renewed and until then, there is no value in FRC.
On the US, global sentiment is low as far as trust and ethics is concerned. On the other side, the US itself has retracted to its own boundaries and seems less concerned about global affairs as it once did via the neocons. Unfortunately, the future looks dim when you consider who will be setting the moral standards to the work with Trump who is a proven liar and a cheater and Biden, who has a memory of a goldfish. Yes it’s true, harsh but fair.
Selling for undervalue would be a cardinal no, no and risk not only Deloitte's insolvency practice, period, but their reputation globally! No.
It looks like current govt are playing their cards out by backing who looks strongest in the Region.
As Russia starts to gain strength due to firstly, the delays in funds from USA and the slowly diminishing effects of sanctions, Countries have a choice. Either like Belarus, become a strong partner and Friend, or risk the same as Ukraine. The possibility of Trump being back in Whitehouse at end of the year is also a risk. If he does the assistance to Ukraine will be just Europe. NATO could become watered down and Russia push thru Ukraine with ease and beyond if it risk assesses that Poland etc will be alone and weak. Georgia does not even have the benefit of NATO protection. You can guarantee that many politicians in Georgia have alliance with Russia due to historic allegiance. The people, especially the younger people smell the freedom, they want to look West. What happens with Worldwide political events is crucial for Ukraine and that then for Georgia. A huge hydrocarbon transit route to Europe and possibly a new source that challenges Russias previous dominance. Russia will do anything to hold Georgia on its side. That is the interference being seen today, the positive is that the younger West facing crowd grows each year and the older Soviet loving demographic gets smaller each year . A race to secure Georgia is on.Does this effect us? Well if we do come out of the liquidation as a operational company then yes it will. So on that note, do i assume reading posts, that many believe Deloitte will see nothing of value as the company is today, that only way to get any money due, is to help them to continue to produce and eventually sell our working block? Can i ask, could Deloitte be trying to gain control of the block to sell its self to another company to gain some financial renunciation, i mean they could sell at a fraction of the value if thats the case and walk away with what was owed them and a few others. So my question is, is the block only available to FRR as a current company, or could Georgia release it to a insolvent FRR to be sold by Deloite
Very poorly reported in the west. They are talking of 500,000 protesting in Tbilisi. From a country with a population of only 3.7 million, that's some turn out.
It is incorrect to say "GD declines to discuss bilateral partnership" without context. The visit was declined because the US refused to remove a pre-condition that the PM suspend discussions on the foreign agents bill.
"(Parliamentary Speaker) Papuashvili said “setting preconditions” while inviting the Georgian Prime Minister did “not fit friendly relations” - "It is unfortunate that the United States Ambassador made a statement with such an interpretation. [...] Of course, conducting a visit with reservations does not fit into the spirit of the strategic partnership. We are always ready to talk both with the Ambassador and our partners in America”, he said."
https://agenda.ge/en/news/2024/38980
Following on the this, a delegation from the US Sec. State will visit Georgia next week. Best to see how that transpires.
https://agenda.ge/en/news/2024/39078#gsc.tab=0
Orbiting all this is the Georgia's desire for an FTA with the USA which includes direct flights from the USA for that new airport they are planning to build. They bang on about it continually.
If you take a snapshot of the 6 month trading pattern of Georgian companies trading on the LSE, 3 of them (BEGO / CGEO / BLOE) are up, some significantly so, and the other one (TBCG) is flat.
I wouldn't directly equate the fate of FRC with this issue, at least at this stage. Developments with FRC have carried on for years with the GG irrespective of how the political story of the day is playing out. The fate of FRC depends on the ability of the liquidation committee to bring parties to an agreement in tandem with obtaining ongoing extensions from the state agencies to allow matters to run their course in Cayman. The state agencies want their money from FRC and they have made clear will not allow the PSA to go to anyone else. In that scenario, they are more likely to side with the company than not if there is a genuine pathway to getting paid (ideally soon) and the company is able to present a viable financial and technical plan that meets the appropriate thresholds established by the agencies / MoU. I doubt they will give open-ended extensions for ever, but they have cooperative in the past as per the extensions granted to the MoU and the comments made in the Creditor Report.
Given the disintegration of US leadership in world affairs today (started with Trump’s MAGA rhetoric followed up with Biden’s senile approach), it’s no surprise that China is seemingly filling this leadership vacuum. Anti-US sentiment may have also spiked because of recent events like the US siding with Ukraine and weaponizing Israel leading to the slaughter of the innocent. But to be fair, there are lots of Americans at grassroot level that are opposing US/Biden’s global policies, particularly towards the Middle East, spearheaded by the young.
But I if true d to look in to the future, the US is not going to break-free from this continued self-destruction when it comes to international influence over the next four years given the choice of the 2 Presidential Candidates. However, and at the same time, there are now many countries that are now openly against the established US, UK, France, Germany, with only the US vetoing the UN resolution of granting more rights to the Palestinians from the G7 group, with UK, France and Germany abstaining.
As far as Georgia is concerned, China considers this small but strategically located country important and is part of their one-road, one-belt initiative. And we know that China is closely aligned to Russia and hence we see this tug-of-war (East v West) play outin Georgia. People on the ground are more aligned to the EU while the political elite want to side with Russia, hence this new proposed foreign policies bill which has caused so much indignation. Obviously that puts FRR in a tough position because the political leverage it had via the US has been significantly neutralized.
Thanks for the updates MP & keysersoze, looking more like the elections will be a telling tale after all.
Just in time for our very own “S”a”N”ta to bring us our gift!?
It’s Sunday folks, please sing along if you wish, and keep those thoughts positive🙏
All things bright and beautiful, all companies great and small…. just like ours?
GLA real holders 🙏
This article from Feb, previous article from May.
Below.link different article.
Economy Minister: Gov’t ready to bring trade, investment ties with US to “new level”
https://www.agenda.ge/en/news/2024/669
Https://www.interpressnews.ge/en/article/131260-robin-dunnigan-i-am-deeply-concerned-that-in-recent-weeks-the-georgian-governments-choices-have-moved-the-country-away-from-its-euro-atlantic-future/
Recently we have invited senior members of the Georgian Government to engage directly with the most senior leaders in the United States to discuss our strategic partnership and any concerns with U.S. assistance; unfortunately, the Georgian side chose not to accept this invitation.
Https://www.google.com/amp/s/civil.ge/archives/603584/amp
US Ambassador: GD Declined to Discuss Bilateral Strategic Partnership at Highest Level
02/05/2024 - 17:12
According to the BBC up to 50000 people were protesting in Tbilisi against the 'Russian Law.'
The Georgian Ambassador to France and Monaco has resigned because of the introduction of the 'Russian Law' (Georgia Today).
Thanks phil we go to ST jOHN Hospital in Livingston Scotland on Friday morning for CCT Scans so will wait and see how we get on and i will be asking the consultant if it would be better of to go private thanks for asking mate cheers.
To my mind it wouldn't make sense the liquidators winding up the business if there was no money to pay their fees and no money for those that brought the liquidation. If however there was no money but a means by which there could be money in the future (the PSA etc) then I would have thought that would make sense to go that route, even to try to aid things along. Where FRUS stands in relation to this and SN registering himself as a creditor in FRC is not completely clear but I assume seen as a necessary move by SN.
On a separate note Toatie how did you get on? I found with my gf (on a separate medical issue) that we were better off getting her private medical treatment abroad as with a little research decent treatment can be found reasonably cheap so long as you are careful. The NHS put back her initial examination and it looked like it was going to be a 1 - 2 year or more slog before much happened in terms of a final operation as her condition wasn't life threatening so a long, long wait. Ok if not too much pain, stuff that can wait but if it's getting on with life that counts then it's pain in the rear. For us it will cost more than it would through the NHS but they may take forever the way things are there at the moment.
My thoughts exactly Looed. The fact that FRC has no money or assets, and Liquidators are not in the business of losing money, our company would have been hastily wound up by now. So, the longer it takes Deloitte to make an announcement, this can only be construed as positive imho.
So, what’s holding things up? For me, it’s down to the renewal of the PSA. People will recall that Deloitte had made an official request to extend the PSA to the Georgian Govt around middle of March given it was expiring by March-end. That is shy of two months, and we have some experience on how slow Govt bureaucracy works in part of the world. On top of that, there is unrest in the country, opposing new legislation concerning ‘foreign policies’. This could be another factor for a slow response. However, if the PSA I renewed, I think this will trigger the availability of the funding facility, which could be used to start a new drilling program and in turn use cash flows to repay creditors. But the question is will GG accept a repayment plan based on a new drilling program or want its $5.6m tribunal costs upfront?
Our man is sitting on the Liquidation Committee so will know what is happening with the renewal o the PSA and may direct different parties for a favorable outcome. All ifs and buts right now.
Generally speaking, if there is limited or no funding to support a liquidation then the process tends to be wrapped up sooner rather than later. If there are no resources to complete a comprehensive investigation the liquidator tends to move quickly to close out the process.
However, even with limited or no funding, the liquidator has certain obligations that must be complied with, most notably the issuing of the Final Report that summarizes the liquidation process, findings and their recommendations. Typically, this report will be sent to all stakeholders (including shareholders) before it is submitted to Grand Court.
Cheers Bezzy. Hopefully we’ll get some good news soon. Looed was sounding genuinely positive just before the liquidation event, so if we can get back to that point perhaps this will finally end well. Current events in Georgia however don’t look great, but who knows what’s good for FRR anymore 😀
Likewise WHamBoy,
Actually - the group has been pretty quiet of late. We're all waiting for some tidbit of news in some form or other, like every other shareholder out there.
I've been trying to do some digging but to no avail (on anything current or pertinent).
Bezzy
Good to hear from you Bezzy. Is chatter on your FRR WhatsApp group generally positive or negative regarding our eventual outcome? I feel like Chris - the waiting at the moment is really painful!
Morning Chris572,
I share your pain. It feels like we could be very close to a positive outcome. But it also feels a million miles away, too!
It occurred to me that Deloitte, who seemed to indicate a lack of funding to do much, may not be in a hurry to update matters on their website etc (perhaps preferring to undertake more lucrative works elsewhere / with other clients). I could be wrong, but maybe that's why there's no real update as of yet?
I'll keep my fingers crossed still. But it is beginning to ache a little.......
All the best,
Bezzy
A little over a month since the report, a short time frame in the FRR story, but god it feel like a lifetime waiting to hear our fate.....
Ok, my mistake - Deloitte & Touché Cayman Islands….. let’s try again.
This is interesting - just been onto Deloitte's website to enquire if I am on the Frontera Register. They give you a number to phone if the subject matter is not on their drop down list. I phoned the number and was told that Deloitte's have not handled a Liquidation since 2019! Have I gone t the wrong Deloitte's?? The lady gave me a number for Teneo, who apparently handle all Liquidations now. Any clues anyone??
Thanks mate, my wife is almost vegan now with changing her diet me i still eat steaks,she goes into hospital for tests next week so see what happens from there if she needs it urgent i will just go private thanks toatie.