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Interesting indeed.
Frontera claimed that the GG consistently delayed there works with permit approvals etc etc but none of this seems to be taken into account.
I can’t really see how there’s any recourse to be honest, but what would be great would be to see the final award.
The GG are obviously not afraid of having it go public, but it seems frontera don’t want this to happen
What mole is saying is because frontera breached the PSA and the arbitration agreed they can cancel the whole PSA, which they have done today.
There will be nothing left
Who knows. - not us.
I do however doubt the company will survive given the current oil price and all of the other legal issues and huge amounts of debt.
May be surprised but I think it’s highly unlikely
My interpretation is essentially that frontera wanted to continue exploring other areas other than those it had already has signed off/agreed with the GG when the exploration phase expired in 2017.
The arbitration agreed with the state frontera should hand these area back.
So what’s left is the 1% of the land with some producing areas, we don’t know what these are yet.
Yes basically they want the info relating to the asset transfer/farm out agreement whatever they called it. Hence the reason for requesting info from FRUS(new company with asset in)
Even with this info they would still have to enter into legal action in Georgia to reverse this, if they could..... long long road
I don’t believe that the legal spending by the GOGC should be viewed in the way being suggested.
In any legal battle, you want the best representation you can afford.
But continuing the theme being suggested, if it was a clear breach of the PSA/contract why would they spend $6m on it?
Interesting an offer has been made, a good sign that a compromise may be reached.
I hear you starrage, however if that was the case, why would SN and Zaza even bother fighting?
That’s how I read it
Worth pointing out that in the court docs the liabilities were around $2m - which is approx the interest owed to OMF.
So I don’t think YA have made a claim to the liquidators, or they have already been paid.
Not sure why you think that.
Seems fairly clear to me in these documents that they have managed to keep the asset away from hope and ultimately that’s all that really matters.
All well and good, however If you are presenting your case to arbitrators and can show that due to the GG not adhering to the agreement to refund VAT, we are unable to pay our employees, they are suffering blah blah...
Much better than just saying I’ve paid them out of my own pocket and now I’m waiting for the Gg to pay us our reclaimed VAT
Just FYI - the average salary in Georgia is $4800 PA,
So 10 months salary for 80 staff is probably only around $320k
I would guess the cash is coming from the VAT owed.
I wonder if that is linked to the arbitration?
Just checked, end of 2018 this stood at $6.4m
Bad and good.
Interesting that the article states and agreement has been reached with the state on the VAT.
Wasn’t this over $5m at the last count?
Wouldn’t this be enough to settle to $2m default... interesting
Quite an interesting author, and a strange connection really..
Basically for those that are interested Levans CV was created by a fund manager at JSC. (The fund that owns the Georgian state oil co)
That’s just me empty shell - read the documents up to June of this year for Frontera Eastern Georgia.
Quick browse of the docs -
Frontera trying to shift shares between its subsidiaries - keeps getting denied by the Georgian authorities.
One of the issues seems to be that they need to provide they have the financial clout in the new structure - they appear to not be able to prove this.
Worth pointing this line out -
“the liquidators or any creditor or member can apply to bring the liquidation under the Grand Court's supervision”
So outrider could have applied for this - not FTI
One of the issues with the timeline is don’t frontera have to spend a certain amount of $million per year in order to keep the licence?
Also this new “study period” is running out too!
Arbitration also commenced apparently... time is of the essence!
If there really is a smoking gun I’m sure hope will settle pre trial, but that could be months yet.