Member Info for 1onic

Pecten, afraid it's a beggars can't be choosers situation.

Don't normally copy posts, far too opinionated normally but this is worth a read imo

I think what you guys are missing is that you think Hope's fiduciary obligations mean he can't invoke the clause in the loan notes protecting their seniority because that's potentially bad for shareholders. You are saying his duties effectively remove that right.

I'm afraid you've just misunderstood.

A few things worth mentioning.

a) Taking positions on boards during a restructuring, adding clauses to protect seniority etc. is absolutely standard stuff. It happens all the time. The creditor is effectively saying we'll allow you to try to trade out of the mess because you've got nothing to give now, but we are absolutely first in line to get paid when we can be and cannot be subordinated by other debt. It's known as DIP as WShak says.

If it was as simple to circumvent as just suing based on fiduciary duty grounds when the debtor director refuses to be subordinated it would be ineffective. I'm absolutely sure this strategy is nothing more than playing for time. I accept you don't agree.

b) Nicandros' offer to fund via subordinating the loan notes (if in fact genuine) should have equity shivering in their boots. If the situation was as it has been portrayed by Zaza then he'd be mad not to put the money in as equity.

This is clearly saying to everyone that the value in FRR breaks way before the equity. Eg there's at best going to be a further restructuring where equity get virtually nothing. If the golden age was really approaching $5m equity invested would be worth $50m in short order.

c) They admit that the company is so broke it needs $5m to survive. This is inline with EasyBrents forecasts. Why no oil revenues?

d) They admit there's no other way to fund the company i) no JV cash ii) no oil or gas revenue ii) equity raise not possible not even indirectly via another death spiral provider.

e) There is no mention of flow rates or production performance. Given the line of argument Nicandros is taking it would reassure the court if he could show that this funding challenge was short term rather than the inevitable slide further into insolvency. The bulls have always argued that they've cracked the code and oil flows will save them. Not a single mention here of that.

f) There's evidence the NOMAD has been kept in the dark and direct evidence that Hope has asked for the market to be updated of the grave situation and has been ignored. That alone could see the NOMAD resign and or the shares suspended in my view.

g) Amazingly bad as it is this is Nicandros'/FRR side of things. We don't even for example know if this $5m proposal was serious or just a mechanism to engineer what he now claims.

h) edit: forgot to add it appears that the loan note interest is payable in cash not PIK. Again a massive bit of information that was never disclosed.

I'm afraid they'll be a bloodbath on Monday if not suspended. The only buyers will be weak sh

Shed, civil case, judge only,

I suspect there will be some lag in that appearing in the public domain

There really has to be a temporary suspension Monday for multiple reasons

cheers, didn't look far enough back

Where's that?

WH, the time to derisk was weeks ago when this started, but the majors RNS blindsided even sensible people.

Good to know Zib, thanks for clarifying

Nostromo and his silver

Get rich slowly was a Conrad character

You're embarrassing yourself old chap, give it a rest

you boys need to lay off the grown up juice a bit, pretty daft and you'll regret it tomorrow, dear me.

1% sometimes

Mysquare, Globo, Quindell, Carillion, China forty, too many to mention really. And no, never do what pundits tell you but at least consider something might be a bit off.

Outstanding risk management by the way.

Stes, maybe you should have listened fool.

What, over someone reproducing a standard letter of reply. just face it you got sucked in and backed the wrong horse / or if you're still in profit move on...

You may well be the winner m8

I'm very nearly done too, just reopened a short on WPCT, fund blowup. Have a lovely time, switch off and have fun (and leave my cute cats alone) xx

To paraphrases wouldn't want to be in it over the weekend lol