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They already got $4m loan from Petraco for the working capital (paid back already with recent tanker shipment) that will keep them going till mid June 2019, so don't panic ! It is increasingly likely that Mr Kononov be the one asking the BOD to resign in the end ! He has not responded to BOD yet in public ....
with no cash for working capital, this will be either placing coming or share being suspended pending litigation issue.
either way, sp will continue going south unfortunately
All the loans are unsecured, if they don’t want to pay we will have long and costly court fees for each case or have to right them off. Shares have been transferred to his daughters trust to make it more difficult to sieze assets from him. It’s not to secure them for her future or anything else. He has probably transferred more assets outside of his uen interest aswell, so if he had to pay us back he doesn’t have the means, once it blows over the will magically reappear on his personal asset book. The fact that it’s not been tr1 shows this must have been transferred recently, He would have known it’s an aim rule to declare. The broker should have forced him to declare if there was any changes on the share register. if this was a tax issue with Hmrc; they would take and sell the recently transferred assets in the trust as it would be obvious that it was done for tax avoidance. But it’s not HMRC, it’s business in Russia, and the loans appear to be legal for the president to hand out, atleast that’s the excuse they are using.
Well, It's quite obvious, Mr Konov is up to no good. So what is his game! Why transfer his 44% Share holding to his daughter? Then administer secret loans to friends/acquaintances out of much needed company funds! Without any doubt, he would have known this money was set aside to pay dividends and for working capital! So why do it?
Then you have to wonder why/how the BOD never noticed the funds disappearing (overdraft going up) from the company bank account! FFS what do they do if not run the company! But then you have to wonder about all the delays, bad weather/bad luck UEN suffered drilling new wells! With the result of pushing the share price lower.
So why was there not a Tr1 issued when Mr Kon's 44% share holding transferred ownership to another party!
You have to wonder/consider are they all in it together.
Freidis loans $1.45m “the Freidis Loans are now understood to be repayable in June 2019. ” $170k LDC loan “However on investigation, the Distillery is not operating as such, and its business is a warehouse” $1.5m port loans “These loans to the Port carry an interest rate of 17% and are repayable on dates over June to September 2019. ” $1.85m in loans associated with clients of “Kamchatka Bank” $360k loans to pro arts $1.44m Loans to Maxitrans LLC $180k in loans to two people associated to Kovonov. Total loans: $6,950,000. UEN the oil backed bank.
His resignation would surely have an immediate and positive impact, and therefore be in the best interests of his daughter. But, if he refuses to resign, and the Company try to sack him, what would happen? Would he have a case for unfair dismissal? Given that he considers that "as the President of Petrosakh he had authority to undertake these actions under Russian law, notwithstanding the established governance procedures of the Group or any potential illegality of his actions under applicable law."
And would it be possible for the Company to sue him, personally, for the missing funds?
We need resolution on this now.
I can't remember I can't remember why he was allowed above 30% interest in a company without the need to make an official offer for 100% of the issued share capital, but this shenanigans highlights the importance of having such a rule in place.
Whatever his game is, there appears to be nothing the remaining 56% of shareholders can do. Corruption and negligence in equal measures is my verdict. I sympathise with all who have been holding these shares recently, selling the last of my already battered holding last week was, in hindsight, the right thing to do, but after reading the accountants report, I would only ever reinvest if the offending director were to resign and be forced to sell. Personally I cannot see this having a good ending for anyone other than the wrong people.
something else that should have been tr1 notified.... transfer of shares to a different name...
Defender2, he can't takeover the Co only owning 44%(or should I say his daughter does!) He would have to at least buy another 7% to make him the majority owner at 51%. Right now that could easily be done at the right price on the open market. Then I think he could make an offer for the rest.
On him saying his daughter has the shares in trust that to me says he has no interest in the company so the board could sack him for gross misconduct, no need to ask him to resign.
Strange happenings here. I nearly bought in not so long ago at 76-80p a share but never had the funds and still don’t at the moment and I have followed this share closely. Is now a good time to buy in? It’s a company that would be making a good profit (also was paying dividends) if it wasn’t for the corrupt director but you would think with the power struggle this directors would all be trying to buy as many shares as possible at this low price. So maybe there is more bad news to come before they do. I’ll keep watching and hope for the current shareholders this turns round
if he took over full control of the company would he have to make an offer for the 55% other shares he doesn't own
or do you think the Bod would put up a fight
Leonid Dyachenko
Chief Executive Officer
Please click on, or paste the following link into your web browser, to view the associated consolidated financial statements for Urals Energy Public Company Limited as of and for the six months ended 30 June 2018 as a PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/3146C_1-2018-9-28.pdf
if you read this report again you will see that the company is makeing money
it hase huge assets .
It seems there's been a systematic and sustained dereliction of duty by the BoD to safeguard shareholders' assets.
They say there's no smoke without fire and after today's news you have am oil tanker ablaze with corrupt activity.
Never mind Mr Kriminalov, what were the rest of the BoD doing here?
Like I sad a few weeks ago - this is utterly un-investible - and now more so than ever. Those who followed the cheerleaders here and bought into this rot should learn something from the experience.
BTW from memory the UK Companies Act of 2006 outlawed un-authorised loans by directors (so they can be treated as theft). But welcome to the Wild West (East) of Russian subsidiaries of AIM-listed companies doing what the heck they like with impunity.
There lies the problem. It could have been his intent to do this and then pick up the rest of the Co for peanuts.
This guy is clearly bent, as crooked as they come.
You assert this as a certainty fundraiser. It is a possibility, yes, but certain? No. And in fact if you review the RNSs since this story broke, you will see that it looks like a diminishing possibility. It is a battle for control between Kononov and the Board. The Board look strong at the moment.
You do realise how business works don’t you? He will buy the assets from the liquidators if he wants to do a buyout these things are planned then executed the only ppl who lose are shareholders, you must be mad buying this, administration and suspension looms imo
Well, if Kononov wants to buy the rest of the company, today looks like the day to do it.
I thought confirmation of $10.3m sales of oil and with some cash left over it would be a positive compared to the last rns we might make profit or a small loss
Wow
Company should just be put up for sale. It's worth a shed load.
Its clearly taking over move form the so-called the bad guy, don't for get he is a banker !!!!! Buy it all at open market will be cheaper than pay back! As a result, total family owned !!! BUY BUY BIY !!!
No threats of insolvency, no need for a working capital review and now searching for replacement. At least AS is as annoyed as us ! GLA
Presumably yes Itsagame.
I was a bit alarmed to see that the Sakhalin Port is in such poor financial shape. Didn't they bother doing any due diligence before buying a 23% stake?
Taken altogether, this looks like a Board asleep at the wheel, and Kononov taking advantage, and behaving as if he owned the whole company. But at least the Biard have now woken up, and are taking control. There is much for them to do. But they are sitting on remarkable assets and a cash generative business.
Interesting read. If the loans are impaired can they be offset as tax losses for the year?
Very interesting. Highlight for me was no more talk of 'taking steps to protect creditors'. If Kononv now steps down the Board will have won. I very much doubt we'll see all the money back, or that Kononov will cover it. But we should get some back, and I have no doubt that we have sufficient assets to secure a longer term loan. And given that Kononov owns 44% of the company, it seems unlikely he will try to crash it. He might try and buy a controlling interest though. That would be far cheaper for him that stumping up $5m.