Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I suspect hope delayed his defence as the injunction hearing was later - but unfortunately for him the injunction was applied again. I suspect he will file a defence by the 28th. Best thing we can hope for is a settlement - is using the 60m fund to retire the outrider notes. I guess it just depends what other dirty FRR have. The only evidence we have seen this far is for the injunction - I’m sure they are saving more for the actually main case. This is especially true if there is a risk to the PSA under the cross default clause. Ever the optimist so let’s see what happens over the next few weeks
As some others have suggested the nomad resignation is interesting. I suspect the non disclosure and board issues have force it to resign. I’ll say again though, with regards to the 500m shares pledged by SN and Zaza - why oh why would they be prepared to lose everything rather than 20-25%? I suppose I’d hope was literally blocking everything they possibly had to force the issue. He was obviously being distanced from the board April/May onwards hence the emails about the NDA and him complaining about not being told the company has sold $1.5 mil of oil
To be fair art - what are you basing this on? Have you read the court documents as to why frontera are suing hope? I’ll say again - Steve and Zaza between them have around 2 billion shares. Why would they lose 100% rather than 25% of their holding? It’s certianly not looking good but there is still a chance this will be resolved. Also - the injunction expired are hope had to file his deference, This window for hope filing was extended by the injunction lapsed. Since then the court had confirmed the injunction will remain into January so obviously the court can see merit in keeping this in place until the next phase which is positive
A settlement will be the only way forward here. I can’t see a nomad taking this on either till this is resolved. Strange really that SN and Zaza would lost everything rather than pledge the 500m shares? Unless of course they are extremely confident they will win, or settle
It’s an interesting point and the timelines roughly suit - 500m shares naked sold as Hope expects/expected to get 500m shares from SN/Zaza?
Dosnt look like a YJ response to me
I’ve read that post, he just thinks it’s 3 years as the debt was rolled over last time. It’s completely incorrect
The problem with that statement is. Hope blocked two attempts to raise cash by vete citing it was not possible due to his notes etc etc. He then went on to offer a 2m loan himself which would be secured. So why does he have an issue one minute with obtaining finance, then the next he is happy to offer his own finance under his own terms.
Hard to say. He may not have actually intended for the default to happen - as in the emails SN and ZM pledged 500m shares to outrider in the event of non-payment. He may have thought he would get those shares.
Yes it’s mentioend in the documents - a change in ownership of the PSA could void it - so really what does hope gain by trying to take the company? Nothing.. I’m sure this will settle OOC as the risks are high for both sides. If it went to court and frontera won - hope stands to lose 50m - if hope wins he gets to call in the debt and take the assets, however there may not actually be any assets to take if the PSA is voided
I think it would be a hard sell for hope to co vince a judge he was acting in the best interests of the company when he blocked zaza 5m offer due to an apparent seniority issue (which would be a breach of impartiality anyway) then proceeded to offer 2m at the same senior level he just blocked?
So im a nutshell zaza offered 5m in loans to the company but hope blocked it by veto - he then offered 2m himself but wanted to appoint further people to the board as a condition. Hope also blocked other attempts to raise finance and vetoed them. Looks like a decent case against hope for a breach of his duties - I suppose the devil is in the detail.
The joke is the source they are claiming this from is an investor email? They could basically make anything they like up and post it. If that isn’t market abuse I don’t know what is! That said I wouldn’t put it past SP to be reporting FRR to the FCA to apart an investigation anyway
I suppose it’s a balance of risk. If you can get one guiltily party to provide evidence against the other and increase your chances of a victory that’s a good deal. Similar I suppose to the immunity offered in criminal cases.
Very true - I suppose today really was about if there is actually a case to hear. I just can’t see any other way hope could procure a breach of the loan notes unless he was involved with YA. And as I said... why would YA agree to defer their loan repayments?
For me the most important part of the court case RNS is the line that. Mr hope/outrider attempted to procure a breach in the loan notes. For me - this absolutely has to be tied to YA. I don’t think for one second YA would have settled with frontera if they were not at fault in some way - and - it’s looking likely that outrider/Hope was involved in this false default. The best thing we could hope for is that outrider and YA were working together and frontera were able to prove it, and in exchange for frontera not suing YA they will provide the documents/evidence against hope. I’m not sure if we will get an RNS tomorrow, the court case will proceed as normal and a settlement can be made at any point.
When negotiating it’s always good to have options. If I was buying a house I knew no one else would be interested in I’d offer a very low price. Frontera are trying to strengthen their position at the table.
Hi, No that’s not my twitter account - so no I don’t contribute to SP.
No I’m not saying that at all - quite the opposite. I would be suing frontera for admitting one of its directors was not carrying out his duties, and as a result I have suffered losses. Might be worth seeing what happens in the caymans first as that could be a good catalyst
At the end of the day fellas it’s all about money. Nothing more, nothing less. I’ve not been burnt jester? Sitting just above my average with 80m. My point is I have no issue suing the company for my own personal gain - especially as any claims will be paid out of insurance...