PYX Resources: Achieving volume and diversification milestones. Watch the video here.
Posts: 6,250
Posted Moleinahole on the 20th August :-
Part 2
Its morally and ethically indefensible for the company to have officially declined to engage shareholders in approaching 2 years given the gravity of the situation unfolding in that period and the events we know have occurred but have not been
Heid - they are operating within the articles but the articles and communication are so poor for shareholders in Frontera case and advantageous to the Directors that it does not help. If I could see a clear breach I would be seriously looking at options to force them to hold a meeting. If I thought they would turn up on the anniversary at an address for the nominal prescribed meeting I'd go. But what address (Houston or Cayman and would they turn up, did they hold a nominal meeting in 2018, 19 and 20 if so how does one find out?
We don't even know who he company secretary is at the moment to write too since Levan apparently "left" in Q4 2019.
Rainbow - its not about chilling and waiting. We have chilled and waited 2 years while all kinds of bad news is uncovered inside the court actions. We will have to wait we have no choice but being "chilled" does not mean exercising blind faith.
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Posted Dulwichman on the 20th August :-
Rainbow. I would tend to agree with you that we could well be less than pawns in the grand scheme of things Mr Mole is quite correct and in my view we as share holders do deserve something concrete. The simple facts are that what ever else is going on we are still a Company with share holders in legal terms and one way or another still have to function correctly other wise it could become an Achilles heel for those who wish to attack/destroy us. Such things as AGMs etc however still do have to take place even if just a nod and a wink meeting.
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Posted DomFok on the 20th August :-
ARTICLE- FOR.GE - POLITICS (Mentions Frontera)
HEADLINE- "IT IS IN THE INTEREST OF THE AMERICANS THAT NO ONE GROUP SEIZES POWER IN GEORGIA"
Pt1
Giorgi Rukhadze , an international relations specialist and the founder of the Center for Strategic Analysis, spoke to for.ge about what the West expects from us and what the ruling team can do so that Washington does not disappoint .
After every message sent from the West, the opposition is agitated, but even the conversation between Pompeo and Gakharia , even the current message of Stephen Bigan, will have an impact and will it change anything in the strategy of the Georgian Dream in the run-up to the elections?
- American remittances, whether they come from the legislature or from the executive branch, consist mainly of two components. One is that the United States is a partner of Georgia as a state, and not just a partner, but a strategic partner with long-term plans in Georgia. The second message concerns the Georgian government, which shows that the United States no longer normally trusts the Georgian government and begins a policy of scrutiny of Georgia. This is reflected in the reports that need to be prepared and then, on the basis of the State Department report, aid will be frozen, if not frozen, support will increase or decrease.
Unfortunately, Georgia-US relations have entered this phase. If before it was based on trust and support, now it has lost trust in the government and America is looking for various levers to prevent the Georgian government from pulling the country out of the path of democratic development. This is what the messages are focused on, and this is what the reports are focused on, checking in order to control the Georgian government, so that the "Dream" does not have a desire to seize power against the will of the people. An example of this was the very active participation of the American side (and not only the American side, but also the European Union) in reaching the March 8 agreement first, then in the implementation.
Do you think the inertia is taken so that in 180 days a preparatory report will be written in the United States based on non-governmental organizations and the Nazis, and it will probably be critical for the Georgian Dream?
- It is difficult to say what will be in the report that should be prepared after 180 days, it depends on how the Georgian government will behave, first of all, in relation to the elections, how the elections will be held, what the election environment will be like, then already in the post-election period. The ruling team will lose the elections, the issue of handing over power will be on the agenda, if it wins the elections, what will be the attitude towards the rest of the opposition, if there is a need for a coalition, how will it act here.
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Posted DomFok on the 20th August :-
Pt2
That is, this report depends on many things, and to say that such reports are made on the story of nationalists and non-governmental organizations is not true.
The US has an embassy in the country, in addition to two major institutions - the International Republican Institute and the National Democratic Institute. Both are American NGOs, but information is gathered everywhere, including from political parties and Georgian or foreign organizations working in Georgia. On the other hand, the current government is trying to deliver its messages, do not think that the government does not do it, it may not do it as effectively as the opposition, but the Georgian Dream spends a lot of money to get their message heard in Washington.
When did the Georgian Dream issue a mandate of confidence in Washington? It was as if he was doing all the work, refusing to persecute his political opponents, which was the order of the society ... Only the failure of the proportional system caused the cooling of Washington , or did it happen earlier?
- The erosion of trust started from the political part. For example, it was an important message to the American side that the open, public promise made by Ivanishvili a year and two months ago, that is, after Gavrilov's night, changed and Ivanishvili reconsidered its execution. This was blamed on the majoritarian MPs, which is a lie, everyone knows. Therefore, this was the first signal, because this public political promise was not only given to the people of Georgia, but also to the international community. However, before the promise of proportional elections, something was accumulating in Georgian-American relations. That is, one issue was a political issue, more precisely, an election issue, the other issue was to stop the construction of the Anaklia port, which happened a little later, but the signals were still there, When the famous briefing of Pompeo and the then Prime Minister of Georgia Mamuka Bakhtadze was held. Had there not been any problems in his back at that time, Pompeo would not have come out so openly and clearly and said that Anaklia is to be built. There was something before that, they suspected in Washington that they were not behaving as expected in Georgia. Stopping at the port of Anaklia was the second heavy blow to trust. It turned out that they acted against the public statement of the Secretary of State in Georgia. Which concerned trust. It turned out that they acted against the public statement of the Secretary of State in Georgia. Which concerned trust. It turned out that they acted against the public statement of the Secretary of State in Georgia.
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Posted DomFok on the 20th August :-
Final Part
The third issue became the topic of "Frontera", when a serious quarrel took place between the Georgian government and "Frontera", all this was added to the failure to reach an agreement on March 8. As soon as the Georgian Dream was given the opportunity, it tried to get into a more favorable electoral position at the expense of rejecting its public promises. Added to this is the fact that a rather large group left the Georgian Dream on Gavrilov's night and then after the failure of the constitutional amendments. These people were the main mediators of the Georgian Dream in the United States and the European Union - Chugoshvili, Khulordava, Katsarava and others. When this team, which was the main messenger in the West, got up and left, it was already a signal that something good was not happening in the Georgian Dream. These people were trusted in Washington and Brussels, At this time, these people so demonstratively left the "dream" together, which caused the erosion of trust in Washington. A few components came together and, finally, we got to this point. In fact, we are now at the lowest level of trust in Georgian-American relations after the period of Eduard Shevardnadze.
If the "Georgian Dream" and the "National Movement", on whom can America count in Georgia? There is one version that "Lelo" becomes an interesting force for them.
- I do not think the United States was betting on any particular political organization. It is in the US interest to have a system in Georgia that promotes democracy. It is up to the Georgian people to decide who will be elected individually or in a coalition. The task of the Americans here is to make this process happen so that power is not taken away by any group.
https://for.ge/view/191904/amerikelebis-interesia-saqarTveloSi-Zalaufleba-romelime-erTma-jgufma-ar-miitacos.html
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Posted Looed on the 21st August :-
Georgia’s hostility to foreign investment is not fitting into its EU membership goal
Pt.1 - FRR is discussed
There is a growing concern in Brussels that Georgia is fast becoming an unwelcoming place for investors after the latest in a long list of foreign direct investment projects have been put in grave danger of being derailed by the Georgian government’s constant undermining.
The latest case, however, could have wide-ranging knock-on effects for nearly 2 billion people and a wider region that goes far beyond the South Caucasus.
During a series of late-night meetings in mid-July, the Georgian government passed amendments to their electronic communication legislation that gave the telecoms regulatory authority (GNCC) almost complete control over telecommunications companies and gave them the ability to appoint “special managers” with absolute authority.
Some other Georgian telecoms firms wrote a letter of protest, claiming that the changes contradict other laws and are potentially unconstitutional. Their main concerns were based on the real fear that the new law could be used to curtail freedom over the internet.
However, sources say that this law seems to be aimed at one firm, in particular – Caucasus Online, whose owners, Neqsol, hail from neighbouring Azerbaijan.
Neqsol is building a digital silk way project of fibre optic cables through several countries, a move that will improve internet access for 1.8 billion people across the Caucasus, the Middle East, and the Central and South Asia regions.
When the decision was made to buy Caucuses Online in 2018, all parties met with relevant senior figures to the Georgian government, including the head of the GNCC, and throughout the series of meetings no objections were raised by the regulator or the government.
In August of 2019, after Neqsol had paid €51 million for Caucasus Online, the GNCC unexpectedly announced that it wanted to scrap the sale, supposedly because Neqsol had not, according to the GNCC, informed them of the sale in the proper fashion despite countless meetings between the two parties.
This hasn’t been the first example of Georgia undermining foreign direct investment.
One of the most notable recent cases involved Anaklia, a planned deep-water port project in western Georgia, which would have been the country’s largest infrastructure project to date. The investors behind the project filed arbitration claims against the Georgian government in July having accused them of undermining the €2 billion project. The Georgian government claimed that the investors had failed to raise sufficient funds, while the investors put the blame on the government for creating conditions that made impossible to attract any direct investments.
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Posted Looed on the 21st August :-
Pt.2
More recently, there was the case of Frontera Resources, an American oil company that was granted the right to develop an area of over 5,000 square kilometres in Georgia. The company had drilled countless wells and invested approximately ?€485 million into the country since it won the contract 23 years ago.
In 2017, the ruling Georgian government accused Frontera of significantly breaching their contract and filed a lawsuit against the company. Legal wrangling continued until April of this year when the Georgian government claimed victory in the court case and announced its plan to end its lucrative contract with Frontera. As a result, Frontera is now only allowed to continue to operate within a fraction of the area that it had previously operated in.
The development of Western-style tourism and business in cities like the coastal port of Batumi (above) has stalled as both Europeans and Americans have largely left Georgia in recent years and have been replaced by Russian, Chinese, Turkish, and Iranian investors. EPA-EFE//ZURAB KURTSIKIDZE
Frontera drew strong support from the United States, where a group of congressmen and senators wrote in May to the Secretaries of State and Treasury to protest Georgia’s actions and drawing the American lawmakers’ attention to the “lack of good governance” in Georgia.
These cases cannot be viewed as isolated incidents, as the actions of the current government seemingly have a strong effect on the amount of foreign direct investments that are coming into Georgia. This has fundamentally changed the very nature of the government’s relationship with the country’s once-promising investment culture, which came largely from the West, for the worse.
Over the last two years, the amount of foreign direct investment, or FDI, into Georgia has significantly plummeted. According to the government’s own figures, Georgia attracted approximately $1.978 billion in 2017, while last year it attracted $1.310 billion, a massive decline of over $669 million. This year, Georgia is on course to perform far worse with only $171.8 million in FDI in the first quarter.
The apparent torpedoing of foreign investment projects and the pushing through of laws that could potentially curtail freedom is seemingly at odds with Georgian Foreign Minister David Zalkaliani’s comments last year wherein he said that “both EU and NATO integration are top priorities for the government and are reflected in our constitution” and that “with Georgia, Europe will clearly be richer.”
The simple fact now, however, is that Georgia has a potentially impossible uphill battle in its attempt to prove to Brussels that the statements of the foreign minister are actually true and that the EU should bother to lay out a path for further integration.
https://www.neweurope.eu/article/georgias-hostility-to-foreign-investment-is-not-fitting-into-its-eu-membership-goal/
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Posted Looed on the 21st August :-
ian12 - well, that was short and to the point - and also hard to argue against.
I wonder what what have happened had we funded a trip to Georgia instead / as well as ?
Would we have learnt more ? Meet the press to present our story, meet the disgruntled employees to get their side of the story or at least figure out if the story is genuine. Visit the plant they are / have been picketing to see what is actually going on. See if we can ascertain production numbers while on the ground, Meet GOGC, opposition MPs? The GSA that hosted the presser - in fact anyone who might listen. "Delegation of Frontera shareholders to visit Georgia to assess what is really going on".
We know Zaza is there, we might finally be able to connect with him - whether he likes it or not.
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Posted Zeninvestor on the 21st August :-
I got very sceptical of the company on many occasions but stupidly didn't heed the warning signs:
1. Steve Nicandros's disastrous conference call several years ago when he sounded like a man having a nervous breakdown.
2. RNSs talking about the 'marketing of oil' rather than oil sales.
3. The refusal to let Mole into the AGM when he flew all the way to Houston.
4. The impossible to find, Varang.
5. Nameless 'service providers'
6. Zaza telling me at the first shareholder meeting that it wouldn't be right to discuss Frontera's major discoveries with the Georgian media (hinting then at problems with the government).
7. The very existence of the shareholder meetings which began to feel towards the last one that he was keeping us onside simply to support the share price which was being sold into by Yorkville and others.
8. The disappearance of Dustin Aro after just a few months.
9. The lack of flow data.
10. The looming court cases in October 2018
I'm sure others can add enormously to this list. I didn't stress test my investment enough and consider the geo-politics on top of the vague wording of RNSs. Zaza seemed very convincing and genuine in person. We have invested in a secretive company operating in a corrupt country still under the thumb of its neighbour Russia. Russia is still occupying a portion of the country. As we have seen this week, Russia has a tendency to poison its political opponents. Russia has huge influence over the President of the USA (and, it seems, the Prime Minister of the UK). So - tricky geology, impossible political environment, corrupt host government, no money in the coffers, failed court cases and arbitration (so it seems) and no communication from company directors. Doesn't look great, does it ?
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Posted Moleinahole on the 21st August :-
We don't need to go to Georgia to start to unravel some of this - personally I wouldn't go I wouldn't want to get in the middle of this dispute on the ground in Georgia.
The problem is that its such a mess I have always feared anything unilaterally would further undermine the companies already precarious position. As I have said I do think they are actually still broadly aligned with us. It is the companies continued silence that puts us all in such a difficult position. It pains me to post these days - I think we all want to help the company in any way we can. Many of us have offered repeatedly and our patience is running thin as the board have decided to go it alone and chosen to not even politely decline but to totally ignore the shareholders. That is the behavior that I find unacceptable.
There is plenty of trouble we could collectively stir up but I doubt it will make any difference to the matter in hand. Frontera quite simply have to find a way to restart operations to pay off the mounting debts and or find a deal to bail them and us out. That has not changed since Dec 2018. In reality that was the same position in 2017 and 2016. The difference now is the loss of most of the block and paralysis of the company caused by delisting and running out of money and embroiling themselves in 2 major damaging litigations with their regulator and main bond holder!
I'm pretty sure they expected the GG to not proceed with the arbitration and thrash something out and for Outrider to back off and give them more time. Neither happened and both doubled down in their disputes which became dangerously comingled in May 2019 when FRR tried to move the Georgian assets. The wheels from what I can see really came off in that May to Sept period which is when the company lost its employees and eventually went into the final rounds of the arbitration with no legal team and no real answer to the requirement to surrender the undeveloped parts of the block and Steve hiding from the Texas notice being served.
With the benefit of hindsight its clear the investment risk vs reward here was impossible to calibrate and made impossible due to critical information not being in the public domain to all. The incorrect interpretation of the block 12 termination terms and concealed 2017 note terms were the key items. The 2017 note terms should have been noticed in the PWC audit of full year 2017 accounts (june 2018?) and that's where I feel most let down.
I think they hoped the 2017/18 campaign at UD2 and Taribani would get them over the line and they were well supported in raising the cash to execute the campaigns. That campaign allowed YA to exit but ultimately like the previous campaigns appears not to have generated the cash needed to service the debt. Fine margins but ultimately I still think its the geology that is still the real issue.
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Posted Looed on the 22nd August :-
Creating 50 jobs over 3 years gets you a Minister and the US Ambassador
"US company Cerberus Frontier will construct a small hydropower plant, to be named Bakhvi 1, in the Guria region of Georgia, announced Georgian Economy Minister Natia Turnava today.
The activities of Cerberus Frontier in Georgia are very important for us, as it develops several small hydropower plants and has a very interesting portfolio..this is a new investment in green energy at a time when the whole world, including Georgia, is fighting against Covid-19...this is another successful example of our economic cooperation with an American company”, Turnava said.
The project details of Bakhvi 1 published by the Ministry of Energy of Georgia read that the installed capacity of Bakhvi 1 will be 12 MW, while the average annual generation should be 78.2 GW/h. The construction cost is $27 million and the construction period is three years.
Turnava said that the new project will create 50 jobs in Georgia."
And
"Ambassador Kelly Degnan: I am very happy to be here for the signing of the feasibility study about the Bakhvi One Hydropower Plant. It’s a sign not only of Georgia’s leadership in this area of green energy, but also another step in the cooperation between Georgia and the United States and Cerberus Frontier in a very important sector for Georgia’s energy security and independence. So, we are delighted to see this moving forward. There is a great deal of effort to coordinate with local communities and to meet very high regulatory standards, and we are very pleased that hydropower continues to be important source of jobs, as well as energy, in Georgia."
(Minster says it's being built, Ambassador says it a feasibility study)
https://commersant.ge/ge/post/natia-turnava-baxvi-hesis-proeqti-amerikul-kompaniastan-ekonomikuri-tanamshromlobis-kidev-erti-warmatebuli-magalitia
https://ge.usembassy.gov/ambassador-kelly-degnans-remarks-at-signing-ceremony-for-bakhvi-1-hydropower-facility/
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Posted Looed on the 22nd August :-
Thanks Mole.
You have posted a few times that you had comms with Zaza up to late 2019. A couple of days ago you also said "Its morally and ethically indefensible for the company to have officially declined to engage shareholders in approaching 2 years given the gravity of the situation"
As you have gone 'on the record' can you share anything from your discussions? Where you able to address your ongoing concerns to him and how did he respond? It would seem you are the only person outside of the Georgian Govt, media and law firms that he has communicated with, so you are in a unique position compared to the rest of us. I think we would welcome any insight you could share from these chats.
The recent comments by you, Zeninvestor, Bedex and others paint a depressing picture. You comparing FRR with the GD really should set off everyones alarm. I am glad there is less of the Zaza can't do any wrong (except for you RR!). Zaza really fits the definition of a cult leader - "A typical cult has a charismatic, unaccountable leader, persuades by coercion and exploits its members economically, or in some other way."
If this rises to fraud, which seems to be the conclusion of some, where could we find evidence?
Understand your decision to stay out of Georgia. For me, this would be the perfect time for us to speak up and make sure our voices are finally heard.
Similar to the list that Zeninvestor started, if anyone has ideas on steps we might take please share and we can discuss what is / isn't feasible.
Posts: 6,250
Posted Looed on the 22nd August :-
The possibility of a Free Trade deal gets another mention -
"CEO of US International Development Finance Corporation: 'We continue building our strategic, economic relationship with Georgia'"
While talking with Boehler last week Gakharia noted the importance of possibly signing a free trade agreement between Georgia and the United States that would further deepen the economic relationship between the strategic partners.
https://agenda.ge/en/news/2020/2597
FRR got a CV bailout loan - US$150,000-350,000K
The loan approval was approved in April. The form says that FRR where able to retain 12 jobs as a result of this loan. It also shows the name of the bank providing the bailout.
"Companies and nonprofit organizations that receive PPP loans may have the loans forgiven if they meet certain criteria, including not laying off employees during an 8-week period covered by the loan. Applicants must attest in their application that the loans are necessary for their continuing operation. Note: This data includes loan applications approved by banks and submitted to the SBA. It may not reflect money distributed to, or credit used by, a given company."
It would seem this money hasn't been used to pay the staff in Georgia?
I wonder if this is how FRR are able to pay US$160,000 so far in lobby fees? Not sure thats how such a loan should be used.
https://projects.propublica.org/coronavirus/bailouts/loans/frontera-resources-corporation-f1e0248725b005d33267b59b4df0cb7c
Posts: 6,250
Posted Ivyspivey on the 22nd August :-
RE: FRR got a CV bailout loan - US$150,000-350,000K
Thanks Looed
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiagMbaqq7rAhVmRRUIHWyzCbAQFjANegQIBRAB&url=https%3A%2F%2Fwww.federalpay.org%2Fpaycheck-protection-program%2F584972-frontera-resources-corporation-houston-tx&usg=AOvVaw3GKUQBj6Wd3uYYYKT6MB7O
Extra little bit
FRONTERA RESOURCES CORPORATION received a Paycheck Protection Loan of between 150,000 and 350,000 through Radius Bank, which was approved in April, 2020.
When accounting for 12 claimed employees and the PPP salary cap of $100k per employee, the actual maximum PPP received by this business is likely $250,0002.
Based on standard PPP eligibility rules, FRONTERA RESOURCES CORPORATION's total 2019 payroll expenses were between $720,000 and $1.2M+ in order to qualify for the PPP loan amount received. Based on their reported 12 jobs retained, this equals an estimated average yearly compensation between $60,000 and $100,000+ per employee1.
Posts: 6,250
Posted Madpunter on the 22nd August :-
IMHO this is definitely not the time to make our voices heard in Georgia. Zaza has been fighting against both SH/O and the GD and now some SH's want to confront him about unanswered questions. It seems obvious that FRR have been hampered by both SH/O and the GD party, as implied by the court cases regarding the former, and by the actions of the latter against other American companies. Now we have less than 70 days to the election and with a united opposition, a very real prospect of removing the GD from government. There's a lot of spun media on both sides, which could be capitalised upon by the GD if a disgruntled SH representative was added to the mix. Regarding FRR ending as some sort of fraud, IMHO ZM and SN wouldn't have exchanged their LN's for shares at a very favourable rate to the SH's. It would have been far easier to have let the company fold and do a deal with the liquidators as the biggest debtors. They would only have had to join SH/O and to have done a deal with the GD possibly involving a Russian company (as SH/O tried previously). IMHO this is why I don't envisage any scam by ZM and SN, which is why I'm counting the days to Halloween.
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Posted Looed on the 23rd August :-
After catching up with the overnight ebb and flow of comments it strikes me that we are, for the most part, reasonable people placed in a very unreasonable position - and trying to apply reasonableness to justify our treatment. I really think we have talked ourselves into thinking it's 'reasonable' to be treated like we are second class.
We see lots of arguments to justify the silent treatment. But Zaza has been anything but silent. Talking to the GG, Georgian Opposition, US politicians, press, TV, internet channels, think tanks, fellow CEO's, lawyers, claiming bailouts, at least 12 staff in the USA, had a meeting (last Nov?) with the protesting workers in Georgia, (presumably) communicating with the non-protesting local staff that have been trying to transport oil, we are producing gas, and he even took time out to flog some wine. We don't deserve a place in this list? Reasonable or unreasonable?
But then there is the argument that the above is OK as he got 'legal advice' not to talk to shareholders, or variations on that argument. But Mole has confirmed that we was in comms with Zaza until fairly recently. So Zaza has been communicating with shareholders, he just chooses not to communicate with us. We come up this the "legal advice" argument as an excuse to validate our second-class treatment.
No wonder Zaza doesn't engage, we are too busy convincing ourselves why he doesn't need to.
Posts: 6,250
Posted CF73 on the 23rd August :-
Have been taking on board continued news, but for now seems nothing new to add to what we already believe we know (though things may be happening behind the scenes)
Firstly, continued thanks to Looed and DomFok, and the number of others here, incl. Mole, Arsenal, Madp etc for the phenomenal work (too many to mention all). This remains a great BB, perhaps the greatest of all amongst delisted stocks.
Second, am with Madp here. Cannot see what value there is at this time, to wade in as (maltreated/ disgruntled) shareholders. We know there is a particular point in the very near future, that provides for a meaningful, observable horizon and timeframe (i.e. Georgian Elections). Whether the lead up to this puts GD under pressure enough for them to give way to FRRs basic demands (they are very basic/ simple to me), remains to be seen. But what we certainly cannot be doing is making it easier for GD to turn the screw -- whether by giving GD amunition or by distracting/ weakening FRR or even, the more likely, combo of both. If I was in ZM/FRRs shoes right now, with battle being what it is, I would not have time nor inclination to be dealing with LTHs. This is not to suggest to that ZM has done no wrong, but to convey the 'realpolitik' of the situation (I know that many will disagree).
If this is not resolved by those elections, and GD come out as victor (to continue in government), I would suggest that that could be the appropriate moment to raise voices. If the pressure of a run to the General Election, with the US weighing in, is not enough to get GD to act appropriately, then I would suggets that a failure to reslove by then, with GD continuing in power), would be a strong signal that this is close to unwinnable ((unless GD hold is weakened i.e. some form of coalition etc that brings more progressive forces).
Best wishes all.
Posts: 6,250
Posted CF73 on the 23rd August :-
We cannot know exactly what kind of negotiations are are taking place behind the scenes, so the idea of turning the screw on FRR at this potentiallly most crucial point in time is the most self-defeating thing I've heard on this BB in some time.
Posted Madpunter on the 23rd August :-
CF73 - It's no wonder that Zaza was on the defensive in the SH meeting when Cheesie walked out (I don't think Cheesie is an enemy of FRR). Zaza suspected some of those aligned with SH/O, Tw et al and possibly the GD were present. Reading this board at times it would seem that the enemy is around and wanting to finish off FRR through any means. Lawyers, journalists and politicians all readily use spin to win, whereas directors are hampered with what they are able to state, hence the need for a NOMAD in official statements. IMHO Zaza has had to counter any spin with whatever means deemed necessary, which may not have been possible playing strictly by the rules. Therefore, by not having to disclose information to SH's, it may have been possible to convey information countering an enemy broadside, without shooting himself in the foot. This is not a normal business environment that FRR is negotiating. However, both Uncle Sam and the EU appear to be backing a change of regime in Georgia and FRR seem to have friends in high places. This is hardly the situation of a company perpetrating some sort of scam. I understand the pessimism of some on here, but other's constant attacks on Zaza may play into the hand's of the enemy, which beggars the question of whether they are actually aligned with the SH's?
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Posted Looed on the 24th August :-
Pt.1
The BB has been relatively quiet for a while so its great to see we had a good debate and some great posts yesterday.
It does seem there are a couple of posters whose only aim is to stifle debate and throw anything into the mix to deflect and detract from the conversation. If only they would devote their time to finding credible info to help us understand our situation. So I do question their motives. It's possible to support the company and be critical of aspects of it.
One thing about this topic that stands out to me is that the exact same argument in favour of keeping quiet. CF73 wrote - not unreasonably - that "If I was in ZM/FRRs shoes right now, with battle being what it is, I would not have time nor inclination to be dealing with LTHs." but you can turn that around and say well thats just proof at how despicably we have been treated, so why shouldn't our voices be heard.
Ziggy picked up on my comment regarding Zaza talking to Mole. BTW my point was in no way to critique Mole, but to point out that Zaza having comms with Mole blows a hole in the "no comms to SH's on legal advice" theory. Ziggy I had a quick look through Mole's recent posts and in a reply to Gipps on 7th Aug he posted - "I'm fortunate in having been able to communicate for longer but my frustration with the company now simply grows." I recall another post where he said he had comms until Q4 '19 but I couldn't see it in the quick search I did. Hopefully Mole can clarify exactly.
For the posters who asked if we would still be part of the company going forward. This is what Mole posted in reply to Ziggy and tsbs1 on 24/07 -
"Ziggy - the ownership is fundamental. Control of that legal entity holds the purse strings of the only real asset and the standing to manage/dispose of it. Outrider based on the 2017 bankruptcy case commentary tried to broker a deal to sell the asset to a company who happen to have also done work for SAOG in Georgia. FTI should be independent but Outrider had been funding their costs. I do wonder if it is FTI who have been chucking spanners in the works (freezing accounts etc) along with other creditors In Georgia as much as the GG - we know there are charges on some assets from the company registry documents most likely mortgages. But FRR have >$20m of debtors apart from Outrider loan notes - so FTI will be under pressure from all creditors and its possible the GG are one as well depending on how you interpret the arbitration costs - they could now be a liability of the entity FIT may be liquidating if its not FR US."
(Mole comments contd in Pt.2)
Posts: 6,250
Posted Looed on the 24th August :-
Pt.2
Moles comments contd -
"Tsbs as I posted yesterday I' m very wary of the latest developments. Alot depends on who you believe but I tend to place greater weight on verifable information and over the past two years that has been from documents that form part of the litigation. The area that gives me he greatest concern at the moment (and I have many) is the status of transfer. I have just been on the registry site and the process remains terminated. Depending on whether you believe the leaked arbitration documents or not it seems pretty clear that the transfer formed part of the arbitration. The dates tend to tie in with the registry entries. As of today he transfer was not completed on the Georgian side you seem to have an odd legal position in that the asset has been transferred internally in Frontera to FR US but the actual asset remains on the Georgian side assigned to a subsidiary of an entity now controlled by the Liquidators.
The comments by the minister yesterday don't fill me with a great deal of confidence that what could now be happening is that the GG are going to leave the dismantling of Frontera to the liquidation process initiated by Outrider.
The liquidator could now have an asset close at hand to work with a sale beyond the control of Steve and Zaza."
These comments where made before the latest 'olive branch' but if the title of translation #29 (hopefully due today) is anything to go by it seems little or no talks have taken place. We know the offical GOGC position on the asset move - its on their website, but don't know if that position has recently changed.
Flakely said "No body is saying turn the screw....the company has shown a great disrespect to us PI's, from the last shareholders meeting if not before and to this day."
Thats it in a nutshell. Don't be fooled by those who try to equate asking questions with somehow being anti-FRR in bed with the enemy. It wasn't long ago a poster did a Trump by "just putting it out there" the ridiculous 'idea' that the translator was GD plant (just think for a moment. How did they find our translator ? How did they coerce him ? Cue rolling eye emoji).
And if us taking action did jeopardise the company - what a perfect opportunity for a simple statement, light on detail, to say "company is aware that SH await a communication from the company and this will be dealt with when possible" or words to that effect.
Trying to assert our rights and get some form of comment from the company be it directly, via Mole etc is completely reasonable. Zaza is talking to anyone he can, it makes no sense that he can make official statements to all the groups I reeled off yesterday but nothing to the majority of shareholders.
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Posted Madpunter on the 24th August :-
'And if us taking action did jeopardise the company - what a perfect opportunity for a simple statement, light on detail, to say "company is aware that SH await a communication from the company and this will be dealt with when possible" or words to that effect.'
So you're happy to jeopardise the company as long as they promise a reply. In other words information from FRR is more important to you than the economic success and survival of FRR. After that statement from you I don't think I need waste my time discussing any of the other points.
Posted Looed on the 24th August :-
twist it all you want MP - What I am saying - which you know full well - is that if the company had any concern that any actions taken by SH might negatively impact the company, they could release a simple statement. As they choose not to, they cannot consider SH to be a threat to events on the ground, and so the 'best keep quiet' argument doesn't hold water.
Posted Madpunter on the 24th August :-
No twisting required. Your words 'And if us taking action did jeopardise the company'.
To jeopardize a situation or activity means to do something that may destroy it or cause it to fail.
https://www.collinsdictionary.com/dictionary/english/jeopardize
Posted Looed on the 24th August :-
wow - talk about desperate.
As I posted earlier - "It does seem there are a couple of posters whose only aim is to stifle debate and throw anything into the mix to deflect and detract from the conversation. If only they would devote their time to finding credible info to help us understand our situation. So I do question their motives."
Posted OneDayRodney1 on the 24th August :-
It is understandable guys getting emotional over the communication issue given the amounts of monies that some of us have invested here. It has also been a huge rollercoaster of a journey to get where we are and almost all of the surprises along the way have been unpleasant ones. Moreover it is made all the more personal by the fact that many of us have met Zaza face to face and decided to believe what he said and trust him with our hard earned.
However at this moment it seems to me that we are in a delicate crucial phase and so I would support Jonathansxx, CF73 and others' opinion that we should adopt a wait and see attitude, until after the elections and then maybe see where we are.
GLA
Posted Kenco222 on the 24th August :-
I don’t think it helps to bickering amongst ourselves.
In my opinion, there is no excuse that Zaza cannot send something form of message, via some form of communication, especially since he has broken cover in the past few months.
Let’s get the election results out of the way 1st... Then we’ll ask ourselves some tough questions!
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Posted Looed on the 24th August :-
Opposition takes a big step forward
The logistics of managing / keeping on-board 30 Opposition parties must be monumental.
30 opposition parties to sign declaration today -
https://www.interpressnews.ge/en/article/108867-30-opposition-parties-to-sign-declaration-today
Sergi Kapanadze: Today we will reaffirm that the propaganda of the government that the opposition parties are unable to cooperate with each other is wrong -
https://www.interpressnews.ge/en/article/108871-sergi-kapanadze-today-we-will-reaffirm-that-the-propaganda-of-the-government-that-the-opposition-parties-are-unable-to-cooperate-with-each-other-is-wrong
Posts: 6,250
Posted DomFok on the 24th August :-
Irakli Okruashvili: Formation of a coalition government will be inevitable
According to Irakli Okruashvili, chairman of the Victorious Georgia party, the formation of a coalition government will be inevitable.
However, according to him, they will not form a coalition with "Dream".
"I think it will be inevitable to form a coalition government, but not with the Georgian Dream, but in the rest of the political spectrum, but it is a little early to talk about it," Okruashvili said.
https://www.timer.ge/irakli-oqruashvili-koaliciuri-mthavrobis-sheqmna-gardauvali-iqneba/
Posts: 6,250
Posted Jonathansxx on the 24th August :-
Ivan won't give up easily.
LETTER TO THE NEWSWEEK EDITOR: 'RUSSIA DETERMINED TO WIELD POWER IN GEORGIA'
"It is no secret that Russia remains determined in its efforts to wield power in Georgia. Traditionally this has taken the shape of military might – as referenced in the piece. But for those of us who have been observing the developments closely, it has been interesting to witness Russia's pivot towards exerting 'softer' methods of control alongside military efforts.
Over recent months, several reports have emerged about the Georgian government stalling or reversing business deals that would have brought the country closer to the Euro-Atlantic family of Nations. Notably, the government recently revoked a contract from an American company to develop the Anakila Port Project; and has been accused of trying to derail the development of a Europe-Asia digital corridor, by reversing a business deal with Caucasus Online and subsequently making controversial amendments to the country's communications law.
There are public concerns that these decisions, and others like them, have been influenced by Russian pressure to regain control of Georgia's geopolitical path.
Western governments should remain alert to any move that has the potential to undermine Georgia's efforts towards Euro-Atlantic integration. Georgia is a country of vital geostrategic importance to Europe and the US – we must make every effort to ensure it is not brought further into the Russian sphere of influence.
Amb. Cameron Munter (former US Ambassador to Pakistan and to Serbia, and former President and CEO of the EastWest Institute (EWI)."
Posts: 6,250
Posted Moleinahole on the 25th August :-
Well the most likely person for us to hear is a liquidator unless they get their act together. If its not a liquidator then the first word should be sorry - followed by explaining the reason for the extended bumpy off road experience, where the dog is and where the golden age has gone. In all seriousness the only answer I want is whether they have a way forward to recapitalise the company. I'd then wait with baited breath for how much its cost me to repair the damage. The silence indicates to me that we haven't yet got an answer.
The reality here remains unless they really have a deal under wraps (which these days I find hard to believe) - the company is either insolvent or they will have to give away alot of whats left to bring in new investment to pay for development and pay creditors. But you never know they could win a court case to get some value back but even then we still owe a huge amount of other creditors and if they lose the damages would finish us off even if the legal expenses don't!
As they only have 1bn shares left - intended to settle YA - equity cant be used without them calling an AGM. So they are more likely to go down a deal which they can control.
So I would say high chance the company folds, reasonable chance we get a dillutive rescue (that helps creditors not shareholders) and low chance something left field like an offer. Based on the accounts alone it would be 100% probability of insolvency and without the political cover 100% of loss of block to government and then insolvency.
Its a total mess - I'm really puzzled how the group company is still going. They may be able to limp on a bit and hope for the best after the elections but that does not solve the financial problems which for shareholders is what really matters and which will eventually stop any company with low revenue and high debt.
At a corporate level the Outrider/Hope cases need to be resolved I think before we hear anything - that is where our delisting and silence was triggered and we won't hear anything till they have a way out of that. Outrider are debt/funding for equity swap predators so once they exhaust the insurance money to pay for litigation maybe they will come back unless they succeed in Block 12 remnants back into the insolvency pot in which case the group will be finished.
Posts: 6,250
Posted OneDayRodney1 on the 25th August :-
Mole: you've painted a bleak picture, yet probably pretty realistic.
I also don't believe most of what Zaza says these days given what he says now about delisting and the arbitration result. So I suspect that the two major deal and the frozen bank accounts are porkies too.
However, this unethical, win at all costs attitude does have positive aspects to it. He is certainly not a quitter, comes across well in public, has some US Government support and seems determined to succeed. As I have said before, as a shareholder he is aligned with us and whilst, in all likelihood, one of the massive hurdles you have eloquently described will floor us, it isn't beyond the realms of possibility that he could pull it off imo.
GLA
Posted regdik on the 25th August :-
Trying to apply logic to this is illogical.
FRR if thy are insolvent (without backing/deal) all GG have to do is call default on the LoT. FRR would have to prove funds and ability to operate the field. GG have not mentioned, covered or actioned on any of their rebuttals towards FRR - why?
What is stopping this “logical” action – I suspect something lodged in the Arb document
Outrider/Liquidators and CC are or seem to be on the back burner or not as active as you would think they would be
It is on hell of hole FRR are in (as are all SH) – high debt, no production and reluctant Government to western investments.
However, a dim light is still on despite all this negativity.
Why are US backing this looser - probably because of Gregoria’s swing to wards Putin.
But! if there is gas that could be extracted to counter Russian supply grip to the West (Turkey has found Gas under the black sea – cost billions to extract) this will be a political game changer in the region.
Outcome is not looking good but as SH’s SN and ZaZa will get no more than us (just a bigger share of nothing due to their holding size) so why are they still fighting this – not logical just illogical
Back to my bunker – just GLA to those still seeking information in the dim light.
Just a that No one know the final outcome – GG/FRR/US/SH’s (certainly no one on this BB).
Posts: 6,250
Posted Looed on the 26th August :-
Translation #29 TVKavkasia with Zaza, 21/08, 34m22s
Pt.1
J1 - International context before the election. The government of Georgia has practically got a stopwatch from the West. Bidzina Ivanishvili is already called the Russian oligarch who is trying to destabilize Georgia. He is accused of undermining democracy. There are certain conditions. What is it like to go to the polls for the government when there is too much observation, attention and criticism from the West. We will talk about it with our first guest, this is the president of "Frontera Resources" Zaza Mamulaishvili. Thank you very much, Mr. Zaza, for participating in the show. Let's talk about the reality where we are and where the Georgian government is. The topic of "Frontera" is one of the main and important ones, due to which the Georgian government has received a lot of reprimands in the last 9 months. "Frontera" has always been an example in the letters sent from the United States that the Georgian government treats American business at least harshly and not only American business. Let’s talk about the last story. Finally, as it was in the summer, it was a congressional appeal to Pompeo saying that progress in the Georgian government has been reversed since the arrival of the Russian oligarch. It was the Defense Authorization Act, which already states that the Secretary of State must submit a report to Congress on the situation in Georgia in terms of human rights and other components of democracy, and only then can any kind of decision be made. What does all this mean before the elections? And, it is probably related to the elections, right? What does such a strong attention from the American side mean for the government 2 months before the elections?
Zaza - Thank you very much. I will be happy to share my opinion on this. Unfortunately, this is the context we have today. There are only a few months left before the elections and the country have not had such a bad relationship with the United States, Georgia's strategic partner, since gaining the freedom from which started the Georgian-American relationship.
J1 - What is meant by a bad relationship? We are not talking about Georgia here, we are probably talking more about the government, right? What does a bad relationship mean? Criticism of democracy has been around at various times. Shevardnadze's time was also criticised for corruption, human rights, and harsh statements towards Saakashvili, sometimes on November 7, about various cases. Now, what is different today under Ivanishvili's government?
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Posted Looed on the 26th August :-
Pt.2
Zaza - The difference is that of course there was always criticism, there was always an active relationship. There has been an attempt to rectify the situation with this criticism and then respond to different authorities for a strategic partner, but one thing is different now. One is that the support of the United States has never been as strong towards Georgia as it is now ...
J1 - Sorry. This is exactly what the government and its supporters point out, that "the support of Georgia from the United States is great and why do you exaggerate the fact that the critical mark there is high." How do we separate all this?
Zaza - The United States has been, is and will continue to be a great supporter of Georgia and the Georgian people, and this strategic relationship, although sometimes very high and as it is now, is quite low, but the United States' attitude towards Georgia and the Georgian people will not change. But what is at a record low today and at an undesirable level is the attitude towards the current government of Georgia. This is the government of the Georgian Dream, which has buried relations with the United States in the field of foreign relations. Numerous examples of this can be cited in the last 7-8 years of what has happened.
J1 - Let us give examples.
Zaza - Here, for example, will tell you one interesting fact. Prime Minister Ivanishvili and Prime Minister Gakharia have never been to the United States in their capacity as Prime Minister. Such a thing ...
J1 - Ivanishvili has been prime minister for a very short time. Once he was in Davos I think.
Zaza - Yes, Ivanishvili was in Europe, but if we are talking about a strategic partnership and the biggest donor country that has always helped Georgia, the Prime Minister is obliged to deepen relations, see more opportunities in this country and gain more support for the country, which neither Prime Minister Ivanishvili nor Prime Minister Gakharia did.
J1 - Was there a desire on the part of your partner? Were steps taken to invite him on a visit and Prime Minister Gakharia did not arrive?
Zaza - Of course it was. In Gakharia's case, this was done with less enthusiasm since he was in the United States during his previous tenure, but this visit was not a great success and he still cannot boast of highly effective communication with the United States government.
Posts: 6,250
Posted Looed on the 26th August :-
Pt.3
J1 - Anyway, since December, there has been one-way communication with letters sent by congressmen to Gakharia.
Zaza - Very actively. Quite actively and in the history of modern Georgia, Giorgi Gakharia will be the second Prime Minister who did not go to the United States to deepen relations. Against this background, we have witnessed numerous letters sent to the Georgian Dream government from the Congress, the House of Representatives, the Senate. As you mentioned, for the first time in the history of Georgia, even Pompeo was sent a very critical letter by congressmen and senators in relation to Georgia, stating that Ivanishvili's government is cooperating with rivals and enemies of the United States and doing so at the expense of US political and commercial interests. Such a thing has never happened before and it is very disturbing.
J1 - These words and phrases sound like a judgment. Is it possible for the US to continue its relations with the Georgian leader? Ivanishvili is the informal leader of Georgia today. Georgia is very precious to America. He is our friend and we always stand by him, but because Ivanishvili is the de facto ruler of Georgia, can he continue to have a relationship with him after these phrases, which is really like a sentence? Ivanishvili is cooperating with America's enemies.
Zaza - After these phrases and letters, a very interesting thing happened. The Georgian government has intensified its lobbying activities. New lobbyists were added to his lobbyists. It is worth noting here that only Georgia and Saudi Arabia pay the highest price to lobbyists in Washington.
J1 - What price do they pay for it? It`s public information, as I know. Could you please give as the data?
Zaza - This is public information. $ 75,000 is a monthly fee, plus additional costs. These are the expenses of only 1 company.
J1 - How many companies does the Georgian government have today, Ivanishvili personally, hired in Washington?
Zaza - They use up to 5 companies. They work in different directions. Kay Street is in Washington, where all these lobbying companies are located and they talk about Georgia with a smile because you have to be very bad at something, in order to hire so many lobbyists and pay so much money. That does not happen in practice, no one else does that.
J1 - Roughly speaking, they spend about $ 300,000 a month on these lobbyists.
Zaza - Roughly speaking there will definitely be so much money. Plus, it's very important, for example, that several political leaders of the Georgian Dream government had previously published insulting articles in the Hills newspaper towards congressmen and various people, and in such a short period of time that it cost more than $ 100,000 to publish just one commissioned article.
Posts: 6,250
Posted Looed on the 26th August :-
Pt.4
J1 - Insulting? What do you mean that they are illegally criticizing the Georgian government?
Zaza - Basically, they have chosen the topic that if any congressman or senator is critical towards the Georgian Dream government, in the opinion of Georgian Dream they are either misinformed or lobbyists of “Frontera”.
J1 - And, so it turns out that you are the most powerful person in the world because the whole congress, senate and white house is working for you. (laughing). I am happy that you are our guest. If I need the letter, will you help me to get it from Congress? This was joke of course. Let`s continue our discussion. What are these lobbyist groups trying to achive? To convince Washington that there are no threats to democracy here, no political prisoners, and in what direction are they working according to your information?
Zaza - The Georgian government has chosen an anti-American and anti-Western direction. This political vector is inclined towards Russia, so in order to justify, on the one hand, they are engaged in anti-American and anti-Western actions, but they try to pretend as if this is not the case. To justify this, they need someone to embellish the picture, and that is why they have hired American lobbyists to send messages to the US government and lawmakers, to the executive branch, to reassure American politicians that Georgia is in favor of strategic cooperation with them and has nothing to do with Russia. In fact it is completely different and as time goes by ...
J1 - What is the reality?
Zaza - The reality is that…
J1 - Ivanishvili and perhaps no one in the government does not want to sever ties with the United States, at least because America is helping Georgia financially among them and I think it is be very important for the country with our economy. It seems that the Georgian government does not want to cut ties with the United States. At least, because he can not oppose the choice of the Georgian people so openly.
Zaza - That's what it's all about. Any poll ...
J1 - Do they know this in America?
Zaza - They know it in America and Georgia as well. That’s why they can’t do it so directly. They do it secretly. You need this America because there is so much help coming from there. And, the aid received from the United States to date exceeds 5 billion. Therefore, they need it. On the other hand, how do you imagine this is a strategic relationship when American NGOs are publicly cursed and fought. When American politicians publish insulting articles in the Georgian or foreign press. It is a very bad investment environment for American companies and they are being persecuted and harassed from the country. And all letters received from the United States were left unanswered. With only 1-2 exceptions, to which they answered with another lie. So it does not fit into a strategic relationship. Everyone sees this well, both in Washington and in the rest of the wo