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Mole, thanks for your reply and I would like to express my appreciation for all your efforts over the years to help FRR investors like myself, by providing information and insights into the complexities of FRR's operations. My appreciation also extends to all others who have similarly contributed.
Well oiled again that is a non state bank with a charge on some assets - again more indicative of tight finances in the period to me and using banks as a source of funds rather than a move by the state.
What it does demonstrate is commercial enterprises in Georgia are likely in the $10m+ debtors and whatever has been borrowed since last set of accounts in 2018. In the event of it going wrong they will want to be at the head of the queue with some security on whatever they have loaned.
Thanks Bugsy and Welloiled.
Cheers Madpunter.
Welloiled - The company structure can be seen in the link copied from the Frontera Archive post from the 5th October 2019.
Page 12 of 180 (page 10 on the actual page) of the link below shows the company structure, with FRGC below FRCC, with the operating company, FEGL below FRGC.
https://1drv.ms/b/s!Ak7gVwQ3mttllmJrCLaIf6M8N8jw
https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=24
what a bloody mess
think the guy with one post to his name hit the nail on the head first pop
Zibrahimovic it seems to depend on which translator you use. Risors, Risoriz, Rissorz and Risorsiz are all thrown up but I think Risorsiz is correct.
Mole, there's more:
Right to pledge/leasing of moving items and intangible property
Pledge/Leasing Registry: R19125407 25/03/2019 18:34:57
Creditor : Bank of Georgia (Georgia) 204378869
Owner : Frontier Risorsiz Georgia Corporate Branch in Georgia (Georgia) 204931431
Subject: Intangible Property Goods: Balance existing inventories both existing and future
Ground: pledge agreement, CAP000326892, National Agency of Public Registry, 25.03.2019
Registry of debtors: not registered
It's this section that makes me suspect there is a move to recover whatever they can from FRGC as it indicates there is a pledge agreement dated 25/03/19 with the Bank of Georgia as creditor. However, as you say, these documents are difficult to understand because of the translation.
With regard to moving the FRGC's 50% ownership of shares in FEGL to FRUS, I haven't seen any document to support this as the last FEGL entry on https://enreg.reestri.gov.ge/ was dated 18/11/2019 which identified FRGC. If the transfer had taken place, I would expect it to be documented there.
Probably just a play on words Zib.. I've seen Frontera Istern Jorjia over the years...
Frontera Risorsiz keeps cropping up recently. Is it a new entity or just a play on words. What was the company that Zaza junior set up?
Well oiled have looked at the document again. Saw this the other week and agree it relates to Frontera Georgia Foreign registered branch (a further Georgian company registration of the Cayman subsidiary that Frontera Caucasus held shares) that used to hold the 50% in FEGL but Zaza moved into FRR US.
It looks like some sort of charge/interest on the company register - the same documents show a mortgage/lease with JSC bank who also have a charge. Always hard to read these documents.
There appears to be two dates 25/03/19 for the JSC mortgage/lease and 19/11/2019 for the other entry , N00640586, 19.11.2019, Revenue Service. Quite what that is and who is behind it is hard to tell. But if you trace the request on 11th May 2020 back to the company registration page it was made by JSC bank to extract from the register.
Maybe its JSC who are concerned about whatever their interest is?
FEGL s in the hands of the PSA termination. If its a 100% termination FEGL would be wound up.
As to the fate of the transfer to FRR US. That seems to have been a matter of debate in the arbitration. Hence why FIT started the litigation in New York potentially to unravel the transfer. The entry is as likely related to that as anything by the the State. To work out what the charge/mortgage interest was you need to try and get behind the bit:
Tax lien / mortgage: 102019424904 19/11/2019 10:33:41
Branch of a foreign enterprise (representation) Frontera Risorsiz
Georgia Corporation Georgia Branch S / N 204931431
Subject: whole property, whole property
Grounds: Notice, N00640586, 19.11.2019, Revenue Service
On 11/05/2020 from what I can deduce from https://bs.napr.gov.ge/GetBlob?pid=400&bid=boVlyOwlsX3qmYsntmLmFOVTl7XUU3VuyGKAyKrhRrJhMyeEbpOYT7btZUE5iqJH it appears the state has taken steps to ensure the payment of tax (and possibly other) arrears from FRGC. Does this mean that FRGC is being liquidated (or is in the process of) and if so, what is happening to FEGL and does it have a future?
On 18/11/2019, FEGL was reincorporated with 50% owned by Frontera Risors (or Risoriz) Georgia Corporation (FRGC), CR 72227 / USA (address Tbilisi, Vake-Saburtalo district, Paliashvili str., No12) and 50% owned by the JSC Georgian Oil and Gas Corporation (ID 206237491); Zaza is the General Director and FEGL’s areas of activity are the search and extraction of oil and natural gas and its address is Gorgasali str., No15, Dedoplistskaro. Why base FEGL in Dedoplistskaro when the owners are based in Tbilisi? Dedoplistskaro lies just to the north east of Taribani (80 km2, approximately 1.6% of B12), Oil: 1,033 MMbbl (OOIP) of which 155 MMbbl is recoverable; Natural Gas: 4.6 TCF (OGIP) of which 3.2 TCF is recoverable (https://fronteraresources.com/operations/georgia/taribani/).
Was FEGL intended to exploit Taribani and if so, what happens now? Assuming that GOGC wish to extract the oil and gas from Taribani then it makes sense to continue the partnership as Frontera understands the geology and has done all of the work to unlock its potential.
On 04/06/2019 Maples certified that FRGC (Incorporation Number 72227) based solely on the Register of Members of the Company maintained at the Registered Office, the issued share capital is $100 and the shareholder is Frontera Resources Caucasus Corporation (IN 97554, FRCC). The IN of Frontera International Corporation (FIC) is 71338 and for Frontera Resources Corporation (FRC) is 256380. Based solely on the Register of Members of FRCC maintained at the Registered Office, the sole shareholder of FRCC on 13/04/2019 was FIC. Based solely on the Register of Members of FIC maintained at the Registered Office, the sole shareholder of FIC is FRC.
From this, FRGC is owned by FRCC which is owned by FIC which is owned by FRC.
The farmout agreement of 13/04/2019 FRGC assigned to Frontera Resources US, Texas (FRUS) an undivided 100% Participating Interest in the PSA with respect to the Farmout Area (Block 12) and its entire Operating Company interest. FRUS is owned by FRC. FRGC had ownership title to 50% of share capital of FEGL, this was to be transferred to FRUS by Leva Bakhutashvili and George Janiashvili. Has it?