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What's the consensus on The FIG signing OM before the June deadline ?
6 weeks left....
I don’t think they are looking at the deadline when it comes to making this decision.
So the answer for me is that it depends on what move Navitas make next. You’re the self proclaimed Chess Master, seems to me that this whole saga with Sealion is more complicated than 3 dimensional chess.
I don't know what to make of it CO as I never knew FIG had control of all existing & future assets rkh have or may come into, like OM.
That's why I threw it out to the board- to see if any of the longer term holders could shed any light on it .
I could understand FIG having control over Rkh's share of SL but to have control over all existing and any future rkh assets, like OM, seems a bit ridiculous to me but that's seemingly, where we are !
If I was FIG , I would certainly not voluntarily give up this total & complete control over Rkh, why would you ?
Does this mean they now also have full control over all Navitas assets too, including Shenandoah ?
It all seems a bit bizarre & weird to me to be honest and I've never heard anything like it in my 25 years investing.
TCM
The situation has been explained here before. FIG holds security over ALL of Rockhopper's assets as a result of a tax deed settlement (which may, or may not now apply) . The OM funder wants a security over the OM award, which is a Rockhopper asset, before paying up. This conflict is a legal matter. It will be concluded with a ranking agreement between FIG and the OM funder, as is the case with any multiple security arrangement.
It has nothing to do with Navitas.
Is this the tax deed settlement on the free carry that they never had that expired in 2021 with the new deal that scrapped the free carry ?
If so, it's the middle of 2024 now and still nothing has been resolved and some posters !
Is this the tax deed settlement on the free carry that they never received that expired in 2021 with the new deal that scrapped the free carry ?
If so, it's the middle of 2024 now and still nothing has been resolved on the matter and some posters actually believe FIG are working with rkh ?
I was being sarcastic about Navitas .....
FIG will not sign by June. That "deadline" will extend.
Patience
The only thing that will happen once the deadline is reached, is that the parties are no longer bound to the agreement. They are still free to continue under the same terms.
TCM, in my opinion the tax deed settlement that AC has alluded to will eventually be dropped. After all there is no justification for taxing money that has never materialised. However the current situation suits FIG as they are able to reign in Rockhopper and keep them focused on developing Sealion. Some have said that Rockhopper management are also happy with the situation. I’m not so sure about this myself and I’d be interested to know what Navitas make of it all.
We have an approximate timeline for Sealion production and working backwards from that date there are a number of announcements that need to be made for pieces of the jigsaw to fall into place.
By the end of 2024 we should all have a clear picture of where we stand.
CO, I appreciate your comments and respect your opinion but have to disagree that "FIG are doing this to reign Rockhopper in and keep them focused on SL" as Rkh are already 100% focused on SL and totally incapable of focusing on anything else, SL alone will be more than a challenge for rkh , so I don't buy this argument.
Rkh do not know when the OM decision will be and they will need that £15mln so to me FIG will be holding both Rkh & the project back if they don't sign.
I just don't see how FIG are doing Rkh a favour on this as some here do.
Rkh have clearly stated they expect the requisite approvals No Later than 30th June 2024 so isn't that what we shareholders should also expect ?
TCM, from what you’ve said we aren’t that different in our view on this….
“Rkh do not know when the OM decision will be and they will need that £15mln so to me FIG will be holding both Rkh & the project back if they don't sign.
I just don't see how FIG are doing Rkh a favour on this as some here do.
Rkh have clearly stated they expect the requisite approvals No Later than 30th June 2024 so isn't that what we shareholders should also expect ?”
Agreed, agreed, agreed.
I don’t know the real position on this for sure, FIG have got themselves some leverage and appear to want to hold on to it for now. But this cash will be needed to allow Sealion to proceed and ultimately the tax is not owed as the proceeds that the tax relate to never materialised. So at some point they will have to relent and allow the development to proceed.