Morning From syric24 Jan 2020 08:00
Symore_Bottoms14m
Isn’t this the continuation of the legal due process in NY? Once the application was made late last year, this was always coming, so shouldn’t have been a surprise. But now we have reached this point, we do need to assess the implications. The court has approved what was requested (uncontested by FRR). So what does this mean? Well, it is giving more powers/access to the Liquidators to follow up all avenues to ‘trace & recover’ assets of FRCC. This also allows them to question Zaza, SN and Levan as part of their investigation. I say good luck with all that FTI/Hope. Plus, reaching Levan and Zaza could be tricky as they are not US citizens. Let the ‘goose chase’ begin, and during all this time, costs are being incurred by FTI; either Hope continues to fund that, or they will have to throw in the towel because money has ran out.
The bigger issue/risk remains on the Arbitration and this was evidently obvious with the Open letter to the Georgian PM from the US-House of Congress. And has it kicked up a right fuss. The PM has now officially responded from Davos, so let’s see where we go from here. But it’s clear that Ivanshivili is pro-Russian while the whole country is pro-West.
interpressnews.ge 1
Giorgi Gakharia on the Congressmen’s letter: We can objectively discuss all...
We are always ready to sit down with our strategic partners and speak about all issues calmly; letters may not be the best form of communication between the strategic partners and friends,
I have to also admit I am at a loss as to why everyone is fighting so hard to get the Block(12) back if it is empty (according to the Georgians themselves). So, if FRR is financially weak and at risk of losing the PSA, why would Hope not try to reach a settlement before it’s too late? Why is he still fighting so hard via FTI? Then you have the Georgian Govt who have hired some of the best lawyers to represent them at the Arbitration. Again, if FRR is weak, would it not be best for them to let them die slowly, rather than risk a political fallout with FRR?
On the PSA, I believe it was legitimately ‘farmed out’ - not transferred (big but subtle difference). If that is the case, then this required Georgian Govt approval. But if FTI are going to contest the farmout, then that could also be a long and costly process - roll out the industry experts.
On the Arbitration, my confidence is ebbing, mainly because of the ‘hard nosed’ approach taken by the Georgians but also by the exquisite timing of Senator Mullin’s letter (to put some pressure on the Georgians).
JMO
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