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Is the Frontera Shareholders Group which was established in January 2019 still active?
I've no idea, but considering all we have heard of late I'm thinking surely there should be a way of getting some kind of Shareholder representative on the board to oversee that matters are not going unnecessarily awry and work towards disclosure to shareholders at some point in the near future as to what is happening at FRR. With Hope out of the picture of the BoD there is little reason left for the info blackout. Maybe this could be done through an emergency AGM? December seems reasonable to me. Any others have thoughts on this front?
Phil whilst you might think that is an easy option with a Cayman registered private company and the company articles as they are it is not.
The board should have come back to shareholders voluntarily to ask for support of some kind but have chosen to neither communicate publicly or put forward any proposals as to how to resolve the current obvious issues. We can't call a meeting unless the board no longer exist through incapacity or disqualification.
The guys have tried repeatedly to establish contact but the company as you have seen with lawyers delivering summons when they don't want to communicate they are hard to establish. The next opportunity it would appear is in 2020 on the anniversary default AGM date. But quite what would happen in the current circumstances at that meeting or whether it happens is moot. However, a some point the board terms of office will have expired so maybe an opportunity exists via that route in time. Steve must be over due by now.
The problem is that with so much litigation already flying about with the company continuing it's line of silence we remain in a catch 22 situation. The purpose of the group was to engage and communicate with the company not litigate.
Personally I'm pleased that the fiduciary case is running out of steam. I have never agreed with it and don't like it. However, it should have ended in April and an accomodation reached with Outrider. That has not happened and instead both sides escalated matters which has left us and it seems the employees where we are now.
I have not seen anything since April I would regard as remotely positive. To me everything looks like a company that is having the life squeezed out of it. But it is not dead largely due to the actions the board continue to take to stall and thwart process. They may yet have a grand plan but if they do this is a very messy way of going about it.
I'll add one comment on the workers. Are these the employees of frontera or the service companies. Uniserve perform alot of the work in the field. Also it's worth remembering FRR had $25m of other current liabilities as at last accounts. The lack of cash may be due to other debts being paid or other creditors having secured cash from the company outside the activities of the liquidators.
The reality has always been that the funding gap was always filled by YA loans or placings paid for by shareholders. With no listing that source was closed. With a likely continuing deficit even with higher oil production they would have struggled and been forced to juggle debtors. You can only do that for so long. Ultimately nothing has changed the company needs to be recapitalised either through a farm in or a large replacement loan on better terms. Both are possible but made more difficult by the arbitration and the other litigation. The optics remain terrible here and I personally find it best to watch and say little.
Mole - Thanks for your incite . Always good to hear from you
Thanks Mole for a very concise and erudite appraisal of our current predicament. Your insight is always appreciated.
Jon.
Thanks Mike that's a useful insight. Next year some sort of AGM would be handy if the fog has not cleared by then which I believe it should have. I get the impression at the moment we are either at a turning point or a very dangerous moment for FFR. I too believe that the court case against Hope has now gone on for too long and needs to be resolved. One problem of not having an empty box is that the box gets ripped apart by different parties wanting too much of what's inside and spoiling it for everybody and nobody getting anything as a result. It sounds like FRR are desperately in need of replacement finance on better terms from just one company to make a better job of all of their loans from various companies. If the arbitration and hope case can be resolved in the next free days/weeks then that could happen from perhaps this December onwards. It sure would be good to see all this mess being cleaned up and better prospects forthcoming.