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Injunction is required as Hope is going after the lot now...
Pulling back the curtain on OMF reveals that Stephen Hope is expertly maneuvering the gears to direct OMF and Mr. Hope’s agents (including MaplesFS Limited (“Maples”) and FTI Consulting) to work to not only dismantle FRCC, but FIC and FRC as well. In the weeks since this action was filed, Mr. Hope has taken actions, detailed below, that have irreparably harmed, and continue to irreparably harm, not only FRCC but also FRC. If these actions are not halted and the status quo is not preserved, the goodwill and reputation that Plaintiffs have cultivated over more than two decades of operation will be forever damaged.
Not much of an update, but I emailed YJ earlier and they confirmed that FRR still holds the asset, operations are continuing in Georgia and hopefully we will be able to relist on AIM once the court case is concluded.
I wouldn't read too much into this as I got one word answers to my questions, it was nice though to get a response.
However, saying that my main concern was the answer to relisting was hopefully, meaning as we all know that there is a very big risk that we have lost everything.
Because we were in dire straits at the time and needed the funding. It was a necessary evil.
If FRR have defaulted, then yes OMF are entitled to the lot. Even during the default, FRR were given the opportunity to pay in shares, but have decided not to.
I never said Zaza personally read it, I said companies do, i.e. their legal teams
I would say it is standard practice for companies to read all the small print.
great post Dulwichman
Tsbs, regarding shares, I believe we hold shares of the parent company not FRGC, therefore if the new company which has the asset is under FRCC then yes we would be share holders.
Well that is the conclusion I came to as I thought the same thing.
Seems to me that they don't think they will win the case and therefore have tried an underhand move to transfer assets to stop Hope getting his dirty hands on them. If this was legally done, then we maybe ok, if it hasn't been then I think we have lost the lot.
And also another Doc
Opposition/Response to Motion
https://www.courtlistener.com/docket/14933328/frontera-resources-corporation-v-hope/
Personally, RR I think you are completely wrong regarding no news is good news, we simply do not know!
The same was said regarding UD2 and monetising the gas by the end of 2017 what happened there?
The same was said regarding the flow rates of T39 etc...we still are awaiting the extended test results, we now know that they had issues with the flow in Eldari A and kept all that quiet.
No news was said about the interest payment, in fact they didn't even bother to tell us one was due in 2018.
When things are going well like in Eldari B, FRR shout from the roof tops, so I don't believe no news is good news.
We must trust Zaza you say, I did trust him which is why I invested in FRR in the first place. But he has gambled all our money going after Hope instead of making the $2m interest payment in cash or in shares, which has left us locked in and delisted. He could have made the payment and still gone after him. This is not why I invested here. I understand shares can go up and down etc and companies can go bankrupt and investing is a risk but I believe we have been completely misled over the years.
Even if we win the court case, how do we know FRR will even relist.
We are completely in the dark and no updates from the company does not help all this speculation.
If I ever get my cash back from this I will be extremely happy, I have written it off in my head, but still read the board in case anything does develop, so I havn't given up total hope.
Depends on your situation. If you have already used your dividend allowance and are a higher rate tax payer, then you pay 32.5% tax on dividends, where as if we relisted, you would have to pay capital gains tax as outside an ISA. Personally, I have not used any CGT allowance and could manage it over years if I had to, with a dividend you have no say as to when you withdraw the cash, sell your shares etc and therefore cannot manage your tax.
But, if I get anything back from this it is a bonus but would prefer a re-list
personally, I really hope we do not get dividends as the tax on them is huge.
This whole thing makes me sick, we have been constantly misled about operations in 2017 and 2018.
The $2m interest payment could have easily been paid via a fund raise or other means (which none of us were even aware was due).
My feeling is this is dragging out the inevitable and we will lose this case and we will not relist or see our cash, I would like to be proved wrong, but my trust in this company has completely and utterly gone.
I'm unsure how people can spend day in day out on this board being so positive about the outcome when they have no further information, personally I am trying to forget I have money here and if I get anything back it will be an absolute bonus which isn't easy to do as I went all-in here.
Best.
OTB, yes they could pay a dividend, but you may get heavily taxed and I for one would prefer a relist and pay tax on profit after the capital gains allowance....although if we got our money back via a dividend that is better than getting nothing back.
For example, If you're a higher rate tax payer and already used your dividend allowance then you will be taxed at 32.5%
I'd sell mine for around 0.5p o.v.n.o.
WHamBoy, some of those questions were answered in the latest FSHG update. If you are not a member I'd suggest you join.
Unfortunately, now is the time we have to be patient, we all want answers but we will not get them until the court case is done.
Zen, I don't believe that to be the case.
If for example, we get the funding and BHGE and BP are on board with a JV then I do not see any need for a fund raise, they will have the funds. I also don't think many PIs will participate in a fund raise as the trust has gone.
If we come through this with these guys on board, then I think the 2019 drill campaign will be targeting at least 2,500 bopd (considering the end of 2018 target was 1,000bopd the target coulkd well be 5,000 bopd), which at a very conservation $50/barrel, 2,500 bopd is $875k/week income, which equates to $45.5m/year.
Great find Chris!
fg, I think we are all slightly (or more than slightly) pissed off to be honest!