Member Info for Madpunter

Posted by OneDayRodney1 on the 16th January :-

What can we conclude:
Some initial thoughts on the reasoning for this:
1. It suggests an expectation of life post arbitration
2. But the ownership is strange
Does this mean that we are all going to be shafted? That's an easy immediate deduction to be made. Why not have them 100% owned by FRR? Our resident 'glass full poster' may have some ideas: over to you Madp. I certainly hope so! The only positive reason I can think of is that they want the Company set up in advance of any announcement, in order to ensure no-one nicks the names, but doesn't want us to know who the owners will be ... as our supersleuths would find out!
They then just transfer the shares to the consortium parties on the announcement and we all partake.

Posted by brgmg69 on the 16th January :-

Zaza has banged on and on about corruption, the USA have done the same, BP have very strong anti corruption policies.

You would hope that would mean we aren’t going to get rinsed out by director corruption. Imagine how it would look.

Posted by sonnyclimes on the 16th January :-

Or could Zaza want to transfer some/all of his holding to his son hence the new entities.

Posted by Madpunter on the 16th January :-

If my theories are correct, then fairly soon FRR and it's subsidiaries will have been bought out by the SM's and will cease to exist. Zaza's son may then be successful in obtaining one or more of the new offshore blocks put up for tender by the GG. If this occurs and we all get a favourable outcome from the sale of FRR, then Zaza's son gets the goodwill associated with the Frontera name for nothing. IMHO it would be relatively easy if this scenario of events occurs for Zaza's son to float on a stock exchange and carry on where his father left off.

Posted by OneDayRodney1 on the 16th January :-

Madp: I knew you wouldn't let us down!
I guess it could be the case but does sound a very remote scenario imo.
Still one cannot fault your positivity and out of the box thinking.

Posted by Oopsi on the 16th January :-

On the two links I posted earlier, I managed to go into the two new entities and look at the docs in the first two sections. However, I was unable to open the scanned doc in the third section for both new companies and still can't. If anyone can, it might give us some more information.

In terms of insolvency law, assets transferred to a family member (or controlled by a family member) can be voided if the necessary legal tests are met. Doesn't therefore make much sense to transfer the assets to an entity controlled by a family member if this can be challenged. This is the English law position - no idea about the US or Georgia.

Posted by Oopsi on the 16th January :-

Two NEW frontera entities registered yesterday (links below). Assuming that is Zaza’s son. Very interesting. Answers on a postcard.

Company Name: Frontera USA LLC Legal form: Limited Liability Company Identification number: 405373313 Registration number: 15/01/2020 Registering authority: LEPL National Agency of Public Registry
Legal address:
Georgia, Tbilisi, Vake district, k. Kekelidze St., N5 Additional Information: Email: fronteraus@gmail.com The person providing the information is responsible for the authenticity of the additional information.

Information on the process of liquidation / reorganization / insolvency
it's not registered
Leadership / representation
Director - Nikoloz Mamulaishvili, 01017019486
Partners
Owner of Share Nikoloz Mamulaishvili, Shareholder, 01017019486 100%
Commitment

https://enreg.reestri.gov.ge/main.php?value=Frontera&state=search_by_name

SubjectCompany Name: Frontera Trading LLC Legal Form: Limited Liability Company Identification Number: 405373466 Registration Number: 16/01/2020 Registering Authority: LEPL National Agency of Public Registry Legal Address: Georgia, Tbilisi, Vake district, K. .Kekelidze str. N 5 Additional Information: Email: Email: fronteratradingllc@gmail.com

PartnersOwner of Share Nikoloz Mamulaishvili, Shareholder, 01017019486 100%Commitment

https://enreg.reestri.gov.ge/main.php?value=Frontera&state=search_by_name

Posted by bugsy-b on the 15th January :-

Off shore tender announcement on SAOG's FB page..

"TENDER ANNOUNCEMENT

The State of Georgia represented by the LEPL State Agency of Oil and Gas of the Ministry of Economy and Sustainable Development of Georgia, acting in accordance with the Georgian Law on Oil and Gas, on January 15th of 2020 announced an Open International Tender to obtain the License for the Use of Oil and Gas Resources on the offshore License Blocks II and III."

https://www.facebook.com/StateAgencyofOilandGas/

Posted by regdik on the 15th January :-

Gosh I wish I could see some real long term blue sky soon. The golf course is like a swamp and my alternative revenue stream of taking the scam money has dried up which has curtailed the pie buying.
As a fully paid up member of the middle management tummy rubbing club we spend a lot of time risk assessing and ensuring we discard the chaff and concentrate on gathering the wheat. So decision making is based on what is known and what risk the unknows are. Similar to posting you can either base on facts (not may of them I know) or logic but make it clear what you base your opinion on.
Buying/dealing in shares is a risk as those that do accept the risk. Smart ones never overstretch and ensure that any losses are manageable and will not cause other (family) harm. Taking a gambling position such as a spread bet is a risk too far for me personally as if I get it wrong the loss could impact more than myself.
Will this share come good I would put it the high risk of failure pile
However, FRR is defying logic as it is by all intense and purpose bust, no known revenue, small retained workforce (has to be one due to the gas plant and small production wells, if not GG would have to step in to ensure HSE is not compromised) and CC escalating costs (Inc. Arbitration). So what is keeping the US Gov on side, the GG not just taking B12 and OMF/Liquidators fighting on.
It is not based on blue sky strategy on what B12 might have but the smell of MONEY.
I know how much of the stuff I will be down if this officially goes belly up, annoying but not life changing for me (stuck to my investing rules). Can those that short or take a gambling position do the same?

I hope this come good for all LTH’s and those that took a different investing route how will you explain this to your loved ones your potential losses.

Posted by Oopsi on the 15th January :-

For what it’s worth, Regdiks post earlier is spot on in terms of trying to analyse the complete legal position. With only ad hoc pieces of documentation, trying to make sense of it all is nigh on impossible.

When the previous litigation between the parties ended and Outrider negotiated “bullet proof” provisions into the contractual documentation, I don’t think Hope ever envisaged this would become such a legal mess with complex contractual and conflict of laws questions requiring lawyers in multiple jurisdictions. This is not a straightforward matter where Hope could have seized assets in previous matters he has been involved in. He will know that any action needed in Georgia will be a monumental headache (and will no doubt be advised as such). He has the personal guarantees in Texas and that looks like the best bet at the moment. I wouldn’t discount an action by Hope against his lawyers for negligent drafting if it turns out that the transfer was “technically” permissible or for advice given regarding enforcement of the contractual arrangements.

As many have said before, FRR may be in the mire but so is Hope. The reversion of the asset to the liquidators is years away, the chances slim, and slim has just left town. Those with full sight of the papers, including Kawaley and Seeborg see it and hence the suggestion for a negotiated settlement.

Posted by sonnyclimes on the 15th January :-

US support for Georgia (1)
Elizabeth Rood Calls on de facto Authorities to Open Crossing Points

"We call on the de facto authorities to allow the local population to live a fear-free life," US Chargé d’Affaires Elizabeth Rood said at the opening ceremony of a rehabilitated public school in the village of Kveshi, Gori district, near the dividing line.

She congratulated the villagers on the opening of the school and thanked the donor organizations for financial assistance.

“The US remains committed to Georgia's territorial integrity and sovereignty. We again urge the de facto authorities to open crossing points on the administrative boundary line and give the local population the opportunity to move freely, receive medical care and live a fear-free life," Elizabeth Rood said.

Renovated school in the village of Kveshi, close to the occupation line has opened earlier today. The school has 200 students from the villages of Garejvari and Zemo Artsevi.

The rehabilitation works funded by Overseas Humanitarian, Disaster and Civic Aid (OHDACA). Repair works carried out by the United States Army Corps of Engineers (USACE).

The project aims to improve both hygienic and sanitary conditions for up to 200 students in the school.

By Ana Dumbadze

US support for Georgia (2)
Military Drill 'Defenders of Europe 2020' Commences in January

Massive supranational military drill “Defender Europe 2020” starts in January. A total of 37,000 soldiers from 18 nations would participate in the training. The drills will take place in Germany, Poland, Georgia and the Baltic States.

General Andrew M. Rohling, the deputy commander of the US Armed Forces in Europe, said “military maneuver is not related to any particular country. It aims to respond quickly to any crisis.”

“The goal is to send a signal that the United States of America Responsibility for Europe and the NATO partners would do justice,” Andrew M. Rohling underlined.

By Beka Alexishvili

Posted by regdik on the 15th January :-

No one not even Oppsi can fully understand what is going on with all these interlinked CC’s. From the side line there seems a lot of inconsistencies, information gaps and a strong mix of international, jurisdiction and commercial law in play.
Originally split the LtO without the full backing of GG which looks like it required a retrospective action to gain agreement.
What we do know about FRR Is that lawyers/litigators have lodged a lot of documents but until the presiding judge rules on these they are just one sides interpretation of the law (unless the lawyers jointly submit an agreed action).
FRR have gone through a number of respected law firms – who I expect were uncomfortable with FRR’s ducking and diving and sailing close to edges of the law. I doubt that was the original plan but served a purpose of buying time. They may have found a more flexible firm so FRR have embedded themselves in a PO box at a top asset protection lawyers premises.
Interestingly every Judge seems to be advocation arbitration rather than a full CC
Litigators want discovery of documents from a number of FRR entities (but how many of there documents are lodged in Georgia).
Final testing of the asset transfer by Georgian LtO has to be in a Georgian Court of Law. (if you think this has ben drawn out then just wait till this International part starts)

Litigators are certainly racking up their costs so must be comfortable that they can recover most of them (if not all).

However, without a successful conclusion to the GG/FRR Arbitration case all of the above is just noise. So continuation and escalation seems to indicate that those in the know must think that a settlement is agreed and there is something worth chasing (and it wont be the licnce).

Just trying to be logical and not like others put my view out there as fact and that the “game is over”.

Posted by HeidHoncho on the 15th January :-

It is getting to be like a .......
kids playground in here.

Now we have got a little kid envious of the more popular (recommend up ticks) kids in the playground, and wanting the spotlight more on them, as they thirst to be recognised.

This is the sort of kid that goes about pulling girls pigtails and running away, such is their need for attention and recognition, and that is the only way that they will get noticed as no one has any respect for them.

These are the sort of kids that grow up to attain infamy of sorts, when in later life you see their faces plastered all over the evening news for having committed some heinous cowardly crime/attack.

Whether it is caused by a lack of success in their own lives, or whether it is a more deep rooted reaction to not being loved as a child, who knows.

The bottom, and undeniable, fact is that this is being played out outside of our control, so ultimately what will be will be, so no reason to get stressed out by it.

Given that the share has been delisted for over a year, with no way currently available for us to recover any of our investment, I would suggest that the vast majority have already written their investment off, so there is no further down side irrelevant of what the final result will be, there is however a glimmer of a potential benefit should things pan out okay.

Conversely, the only people who should continue to have any concern over the outcome, and feel the need to continue to promote the negative so as to at least make them feel a little better meanwhile, would be the exposed to unquantifiable losses were the ultimate outcome to be in any way positive, I would imagine.

A famous person once said, “stupid is, as stupid does”.

All IMHO you understand.

Posted by Ziggyzag on the 15th January :-

Thanks Taff
Struggling to square this latest court doc with B20 post and Mads opinion re Non objection certificate. DTI are still seeking discovery on all aspects of the FRR group including FRUS where we think asset went to . So presumably still looking at legality of asset move , amongst other things.

Posted by Madpunter on the 15th January :-

Ziggy - FTI had all those powers mentioned in the Caymens, but did not have :-
(d) ordering that the administration or realization of any assets of FRCC within the territorial jurisdiction of the United States be entrusted to the Liquidators as the exclusive representatives of FRCC in the United States;
In other words, access to any bank accounts held by FRCC or it's subsidiaries in the United States.

I should have added 'IMHO' as I mustn't offend ODR and SR, who will know doubt point out that FTI already had control over FRCC and it's subsidiaries under Caymen's law. However, if the bank accounts of the said companies are in the US, I would expect some sort of protection under US law. Hence the requirement of Chapter 15 to assist with the liquidation process, when foreign companies with links to the US are involved.

Posted by StarRage on the 15th January :-

So, the liquidators are requesting access to FRCC's US assets (I wonder why?!) and B-2-0 comes to the conclusion that the arbitration is settled and a deal done. Now, that can only mean one of 2 things. B-2-0 is a wind up merchant who is playing you for fun or is even more desperate that RR. 24 tick ups so far! I mean, really!

Posted by Taffy52 on the 14th January :-

Also attached was a draft court order for the judge to. Insider when the case is heard tomorrow. One of the draft orders requested is discovery on FRR Directors

7. ORDERED, that the Liquidators are hereby authorized to examine witnesses, take evidence, and seek the production of documents concerning the assets, affairs, rights, obligations or liabilities of FRCC by: (a) issuing discovery requests to: i. Frontera Resources Corporation (“FRC”), Frontera International Corporation (“FIC”), and Frontera Resources US, LLC (“FRUS”),

all entities registered or doing business in the United States that owned, or are affiliated with, FRCC, for copies of all of the books and records, transaction documents among FRCC, including but not limited to transactions involving Frontera Resources Georgia Corporation (“FRGC”, and together with FRC, FIC and FRUS, the “Frontera Group”) the equity of which is the principal asset of FRCC, and other financial documents of FRCC concerning the valuation, assets and liabilities of FRCC, including undisclosed intracompany loans among FRCC and other entities in the Frontera Group; ii. Steven C. Nicandros (“Nicandros”), Zaza Mamulaishvili (“Mamulaishvili”), in their capacity as certain of the directors of FRCC prior to the commencement of the voluntary liquidation (together, the “FRCC Directors”) and as directors or executives of the other entities in the Frontera Group, who appear to reside or maintain a presence in the United States, for information about FRCC concerning its solvency, transactions, pending disputes, assets and liabilities; and iii. Levan Bakhutashvili (“Bakhutashvili”), in his capacity as Vice President, General Counsel and Corporate Secretary of FRCC. (b) examining any witnesses located within the territorial jurisdiction of the United States, including but not limited to the FRCC Directors, who appear to have managed the day-to-day operations of FRCC, and who executed personal guarantees with respect to restructured promissory notes issued by FIC, the default upon which triggered the voluntary liquidation; (c) granting the Liquidators authority to assert claims of FRCC against parties that are subject to the jurisdiction of courts in the United States; (d) ordering that the administration or realization of any assets of FRCC within the territorial jurisdiction of the United States be entrusted to the Liquidators as the exclusive representatives of FRCC in the United States; and (e) granting such other and further relief as the Court may deem just and prope

Posted by Earsbern on the 14th January :-

Document 18, NY
Description on the list - 'Certificate of No Objection Pursuant to LR9075-2 to Entry of the Proposed Order Granting Recognition and Relief in Aid of a Foreign Main Proceeding. Filed by Warren E.Gluck on behalf of Frontera Resources Caucasus Corp.'

I take it that this means that no objection has been made to the court recognising previous court proceedings in the Caymans. Could more knowledgable people please tell us whether this is this good, bad or indifferent to FRR?

Posted by Madpunter on the 14th January :-

Earsbern - IMHO it implies that as there's no objection to the proposed order granting recognition, and there's no application for relief to protect the assets of FRCC. In other words, FRR want to speed things up in the liquidation process.

http://www.uncitral.org/pdf/english/texts/insolven/insolvency-e.pdf

Posted by Taffy52 on the 14th January :-

Document 18 has been filed by lawyers representing the liquidators

HOLLAND & KNIGHT LLP By: /s/ Warren E. Gluck, Esq. Warren E. Gluck, Esq. Richard A. Bixter, Jr., Esq. (pro hac vice) Elliot A. Magruder, Esq. 31 West 52nd Street New York, New York 10019 Telephone: (212) 513-3200 Email: warren.gluck@hklaw.com richard.bixter@hklaw.com elliot.magruder@hklaw.com Attorneys for David Griffin and Andrew Morrison, the Joint Official Liquidators and Foreign Representatives of Frontera Resources Caucasus Corporation (in Official Liquidation

Posted by B-2-0 on the 14th January :-

Deal settles the case
My reading of US case law is The foreign case has delivered a scheme of arrangement to satisfy the creditor requirements, and therefore the debtor has applied for and been granted injunctive relief i.e. Deal done in arbitration, creditors to be paid, case closed. Gla B20

Posted by StarRage on the 14th January :-

Anybody who seriously believes that a commercial loan stops accruing interest when a payment is defaulted is unfathomably dim. Note also that the default was on an interest payment, not a capital repayment.

Posted by pophead on the 14th January :-

Star you got stung and lost a lot of money on FRR. That’s it you’ve convinced me. You’ve had a good luck at your wounds but because you very sensible and did not lose more than you can afford to lose they were not bad wounds anyway. That’s it, that’s all there is to say here. You could just as well forget all this nonsense and get on with your life. What’s missing here, your 95% certain this is all over for FRR. Nothing more to gain and nothing more to lose. Why hang around here trying to convince a bunch of losers they are wrong????? GLALH

All the posts from P41 starting with the one copied below, should have one day added to the dates. Therefore, the post below was posted on the 12th and not the 11th. The error finishes with this post.

Posted by erazzel on the 11th January :-

70. FURTHER CASE MANAGEMENT SCHEDULING ORDER, ORDER REFERRING CASE to Private ADR. Amended Pleadings due by 9/11/2020. Jury Selection/Trial set for 1/25/2021 at 09:00 AM in San Francisco, Courtroom 03, 17th Floor before Judge Richard Seeborg. Pretrial Conference set for 1/13/2021 at 10:00 AM in San Francisco, Courtroom 03, 17th Floor before Judge Richard Seeborg. Signed by Judge Richard Seeborg on 1/9/20. (filed: 01/09/2020)

THIS IS GOING TO TAKE MANY YEARS JUST LIKE THE PREVIOUS BANKRUPTCY WHICH FRR CAME OUT ON TOP OF. SAME WILL HAPPEN HERE BUT WILL TAKE 4-7 YEARS IMO

Posted by PJOHN on the 13th January :-

Arbitration
https://globalarbitrationreview.com/chapter/1178845/upstream-oil-and-gas-disputes

Posted by Symore_Bottoms on ii on the 13th January :-

According to:https://community.advent.com/producthelp/products/geneva/geneva%2016.0/geneva%2016.2/help/Screens/About/About_Defaulted_Bond_Transactions.htm 1Coupon/interest stops accruing when there is a non-payment [thus triggering a default on the debt]. So, if this is applicable in our CLNs, and noting the hefty rise in the coupon rate and cash payments, perhaps it was always Zaza’s+SN’s intention not to pay when they reached this ‘point in time’. May be that is another reason why Zaza wanted to have ‘that’ last investor meeting in October 2018?May be the plan was always to put Hope under intense legal pressure that he would succumb to an acceptable financial settlement, especially as he only paid 25cents to the Dollar on these notes. But alas, they appeared to have underestimated Hope’s zeal, because he called their bluff and liquidated his collateral, namely shares in FRCC and personal guarantees…In my view, the initiation of liquidation proceedings and call up on collateral crystalized the debt at that point in time. Again, I am no corporate lawyer and haven’t seen the ‘fine print’.Regardless of the legal ins-and-outs, we were kept in the dark with non-disclosure of material information relating to the CLNs.Looking at the 30 June 2018 financial results, CLN stood around US$35Mln.Also interesting, in the same accounts, this is what is says about the PSA: In June 1997, the Company entered into a 25-year production sharing agreement with the Ministry of Fuel and Energy of Georgia and State Company Georgian Oil (“Georgian Oil”), which gives the Company the exclusive right to explore, develop and produce crude oil and natural gas (“Petroleum”) in a 5500 square kilometer area in eastern Georgia known as Block 12, hereafter referred to as the “Block 12 PSA”. The Block 12 PSA can be extended if commercial production remains viable upon its expiration in June 2022.It seems from the unpaid workers’ news article, where Zaza stated that PSA was to 2027 and “this was not enough time for investors to get their investment back”, meant that GoG probably agreed/approved a 5-year extension? Not sure.Anyway, so much going on that it easy for one to get lost in the detail i.e. Cali case, Texas case, Arbitration.Looking forward to seeing the news on the Texas hearing which took place last week. The update on that case could have far reaching impact.As usual, JMO.

Posted by theprodigy on the 13th January :-

still a lot of political undertone here
http://georgiatoday.ge/news/19025/Saakashvili%3A-A-Bit-More-and-this-Regime-Would-have-Fallen

Posted by bugsy-b on the 12th January :-

Georgia/U.S. foreign policy
Interesting read.. Especially about Ivanshivilli...

"Mikheil Saakashvili: Georgia is the place to prove resolute American foreign policy"
by Mikheil Saakashvili
| January 13, 2020

https://www.washingtonexaminer.com/opinion/mikheil-saakashvili-georgia-is-the-place-to-prove-resolute-american-foreign-policy

Posted by regdik on the 12th January :-

Hi Prod

FRR have a lot of sunk costs (400M+) in B12 and a loss of the LtO this would not be recoverable. As you see by Oppsi’s post ARMCHAM are still debating the Geopolitical issues of the region so I do not underestimate the value of the US Gov backing US interests in Georgia (and FRR’s).
B12 could be worth many many Billions if 10% of the reserves are true. However, it will be in the billions to monetarise this asset and get it to market. So you need some one with deep pockets and a vested interest in the region as an ideal partner. GG, FRR and the majors know this as do the Russians and Chinese. FRR even with 150Mil loan it would take years to reach the billion dollar target ZaZa set. I do not think this is acceptable to the GG as their future security lies in NATO and ultimately joining the EU. To achieve this aim it would not be to bad to announce a large energy field (5th in the world) and an agreement with a Super Major to develop their joint fortunes. However, the best prospect is with a tiny bankrupt prospecting company but unfortunately have the ear of senior US politicians.
So IMO a deal has to be (is) agreed that is in the best interest of GG, FRR and US pollical interests.
Haven’t a clue what that will end up looking like but it will be better than where we are now.
My own thoughts it will involve payback of some of the sunk costs (explains our Ukraine bid money and looking for other opportunities) and a production/profit share deal. It cold be the GG/FRR + Major partnership or a one off payment and bye, bye to FRR in Georgia.
Just think of all the pie’s I could buy and who I could pay to rub my tum.

Posted by Madpunter on the 12th January :-

regdik - The big plus on the side of the costs to monetise Block 12, is that the transportation pipelines are already in place and partly owned by BP. Also, the costs per barrel are some of the lowest in the world and it's onshore instead of offshore. IMHO BH will provide the wells, gathering pipelines etc for a share of the field, as they haven't been involved from day one for nothing. BH will then get years of work on a massive scale and the other SM's would only have to stump up the initial costs for their share of Block 12, spreading any risk.

Posted by Oopsi on the 12th January :-

Levan spotted but no sign of the deadly duo.

AmCham Business Roundtable

Friday, January 10, 2020

AmCham Georgia organized a Business Roundtable with General Wesley Clark - former NATO Supreme Allied Commander of Europe, Commander of Operation Allied Force in the Kosovo War and regular commentator and an expert on geopolitics and security matters. General Clark was presenting about the Geopolitics, US politics and the state of the world today. Members had an opportunity of Q&A.
[photos of the event (71)]
http://www.amcham.ge/

Posted by pashtastic on the 12th January :-

Facts eg court cases documents, RNSs, etc. are all open to interpretation and hence opinion and hence discussion on this BB. Keep up the good work Madpunter, keep those opinions coming

Posted by EkXoc on the 12th January :-

Star clearly has an agenda.. writing style similar to sweetkarolina on ADFN so if I was a betting man thats who I'd say this alisas is. How can you take someone seriously who won't answer a simple question on Cairns and who claims to have bought 5Mil shares and then goes out of way to find and post quite frankly dubious/irrelevant information about the company. Also remember that some of Cabal did own shares if only to get them access to company meetings etc. There is ALOT of stake here and the Enemy have no scurples whatsoever. I'd rather be a decent loser than an immoral billionaire everytime. Thanks for your posts MP I also appreicate the work you put in, and acknowledge that you take great lengths to only post an opinion. At the end of the day we are all simply waiting for an offical update nothing else matters. But in the words of John Konnig "Whilst theres chips on teh table we are still in the game"