RE: Gotreal & Turnshie25 Dec 2018 12:20
Tumshie...
Seasons’ greetings to all.
Obviously not the position we all wanted to be in, however, I still have faith in SN/ZM to win this battle. While we haven’t saw all the court documents, a few points if I may;
The 2016 FRR/OMF debt restructure agreement, while not ideal, was probably necessary. Keep your friends close, but your enemies even closer.
So how can SH veto the ZM $5M funding option? ZM just needs to propose/state/agree, that it won’t have seniority over the 2016 SH/OMF notes.
Surely it can’t be acceptable legal protocol to initiate default proceedings by making demands sent by email or text message? A final big bluff by a desperate SH?
The funding vetoes by SH could be construed, to an outsider, as caution/protection on his part, however, the vetoes, then claiming default, is the final piece of the jig-saw needed for SN/ZM to finally nail, oust, and sue SH/OMF.
The NOMAD… it is likely they have resigned to save themselves further embarrassment. It is part of their duty as advisor, to have known and ratified the detail contained in the 2016 agreement, so they can’t come out now and say the recently released court documents contained information unknown to them, i.e. the default clauses. It is more likely, they have been duped by SH into discussing/advising on the default clauses, while he is only a director, not part of the ‘daily operational’ management team. Business is business, a new NOMAD will be appointed in due course.
So, I don’t agree that it is SH/OMF who hold all the aces. Even if SH won his 500M shares and a settlement payment of $30M, he is still due to be sued for $56M, for his fiduciary duty’s failures. It is also very unlikely that he will gain control/ownership of the asset. In a previous take-over attempt, SH proposed to sell the asset to a Russian Company (MND) Do you think that after all the work the EU/US have put into Georgia, that they will allow the asset to pass into SHs hands, no chance.
Unless all this is an SH/SN/ZM stitch up, I believe it is SH who has a decision to make, i.e. he may win 500M shares and a $30M pay-out, but stands to lose, $56M, and more, his reputation.
For me, the likely outcome is a win for FRR; SH ousted from BOD, all SH/OMF debt wiped, with a ‘nominal’ payment to SH/OMF of around $10M. (a profit to his original note purchase price)
Finally, please, this is not a time to lose faith in our ‘investment’ and our BOD.
All just IMO.
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