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Posted by linandy1 on the 31st October :-
Para 159
that why levan not with them anymore?

Posted by JimSlade on the 31st October :-
Para. 159 copied from the 18 posts of court papers posted by JimSlade (see from the 5th post down on P28 to P29 of the Frontera Archive links below)
159. Finally, the Liquidators respectfully request that the Court permit the Liquidators to
examine any witness located in the United States, including the FRCC Directors and Levan
Bakhutashvili, who, according to FRCC’s register of directors and officers, is FRCC’s Vice President,
General Counsel and Corporate Secretary, each of which appear to reside in the United States.

Posted by Oopsi on the 31st October :-
Levan
Currently away but only a quick point. Changing of lawyers is never a good sign in the normal course of events. However, it may not be as straightforward in this case. The liquidators are keen to interview Zaza, Steve and Levan. The latest court documents filed by the liquidators confirm this and assumes that Levan is still GC and Vice President. Out of our key three protaganists, I would say Levan is the key to the detail they need. Now what if Levan turns around and says I’m no longer employed by FRR and have no documents in my custody, power or control. I can remember some of it but need to see the documents to confirm my understating but oh sorry I can’t access them anymore. Also convenient that he is now an independent legal consultant.

I should have added that different rules will apply to Levan by virtue of his membership of the New York Bar which will make it more difficult for him not to comply with any order. There may also be issues re client privilege. Perhaps this was the only way that It could it be engineered to make sure Levan didn’t breach the duties he owes as an attorney.

Posted by Mickthegambler on the 1st November :-
I'm confused as his last CV still says he is still working for FRONTERA

Mick - The latest CV is fake and comes from the fund that owns GOGC (see the last but one post in the Frontera Archive P27 link below)

https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=27
https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=28
https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=29

Posted by regdik on the 31st October :-

Take a helicopter ride and look down at FRR.

You will see a company fighting for its life and have since December last circled the waggons and focused on one thing – keeping the licence out of others hands.
This as we now know is total lockdown of the company.
What they needed was time and money – those that think a major would chip in a mil or two knows nothing about corporate governance. Yes they have been on site. Yes they have reviewed the data and may have kept a close watch on what is going on but until they know the ownership or % ownership not a bean will be given out (same with those that would offer a loan). If FRR fail then the licence reverts to GG then the majors can move in and take a stake in the potential that is there.
I hope a deal will be agreed soon as time is running out (PSA timeline).

A lot is said about the importance of the CC’s but these are happening on another continent and enforcement will take years to reach the International courts to force Georgia to enforce any outcome. I bet a smart lawyer is advising every move (one they pay) to how to duck and weave and play for time. The important case is the one in California. Caymans have access to FRCC (5%) but the main prize seems to be out of reach. DoS failure will require the liquidator to prove that the debt will not be paid and that FRR are in default (which would mean the licence would be immediately revert to Georgia). So I bet that every $ will be going into FRCC to meet any cost/repayments. If not bye bye licence and therefore FRR.
So instead of being compliant FRR are being a right pain in the courts arse and buying time. Lawyers can say what they like but buying time hurts Outrider and adds costs as very change or missing document means a potential court reschedule.
In the end one of two things will happen – FRR goes bust and nobody (SH/Outrider) gets a dime or the GG arbitration deal is settled and funds are raised by selling their share of the block and they settle the debts.
Oppsi’s view would be good as an expert in this area.

158. Critical information concerning the Potential Claims is located in the United States in
the form of: (1) the books and records of FRCC and FRGC; (2) pleadings and strategy memoranda in
the Arbitration; (3) transaction documents and other corporate records concerning the Assignment and
Farmout Agreement; and (4) accounting records of FRCC and FRGC, which are in the possession of
either the Frontera Group or its external auditor, PricewaterhouseCoopers (“PwC”), each of which
maintain a place of business in Texas.
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159. Finally, the Liquidators respectfully request that the Court permit the Liquidators to
examine any witness located in the United States, including the FRCC Directors and Levan
Bakhutashvili, who, according to FRCC’s register of directors and officers, is FRCC’s Vice President,
General Counsel and Corporate Secretary, each of which appear to reside in the United States.
160. Examining witnesses with knowledge of the causes of the insolvency of FRCC and who
can assist in realization of FRCC’s remaining assets, is an essential tool in the Liquidators’ efforts. An
examination is crucial to the Liquidators’ attempt to understand FRCC’s past and current asset position,
given, among other things, the ambiguity over the true nature of the Assignment, which occurred
immediately prior to the placement of FRCC into voluntary liquidation, and the potential losses of
FRCC, as the sole shareholder of FRGC, in the event that the Georgian Government prevails in the
Arbitration.
161. Under the circumstances, the Liquidators respectfully request that, pursuant to
11 U.S.C. § 1521(a)(4), the Court allow them to commence discovery in the United States with respect
to: (1) all entities in the Frontera Group incorporated or otherwise doing business in the United States;
and (2) the FRCC Directors and officers: Steven C. Nicandros and Zaza Mamulaishvili, both in their
capacity as FRCC Directors and directors of any other member of the Frontera Group; (3) Levan
Bakhutashvili, in his capacity as Vice President, General Counsel and Corporate Secretary of FRCC;
(4) PwC; (5) any professional advisors engaged by the Frontera Group in relation to the Assignment
and Arbitration; and (6) any other related persons and entities.
162. Obtaining this information will substantially assist the Liquidators in realizing assets of
FRCC and determining whether, where and how FRCC should commence actions asserting the
Potential Claims.
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163. For all of these reasons, I respectfully request that this Court enter an Order: (i)
recognizing my colleague Andrew Morrison and I as duly authorized foreign representatives of FRCC;
(ii) recognizing the Cayman Liquidation of FRCC as a foreign main proceeding under Chapter 15 of
the Bankruptcy Code; (iii) granting the addit

145. Ultimately, any potential claims resulting from this investigation will be overseen,
managed and resolved by the Liquidators from the Cayman Islands.
146. As a result, I believe that all relevant creditors, directors, stakeholders, and shareholders
regard FRCC to be a Cayman Islands company.
147. Under the circumstances, I respectfully submit that the Cayman Islands is the COMI of
FRCC and that there is no basis for rebutting the presumption that the Cayman Islands is FRCC’s
COMI.
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148. In accordance with 11 U.S.C. § 1515(c), I am aware of no other pending foreign
insolvency proceedings, except the Cayman Liquidation, in which FRCC is the subject of the
proceeding.
149. FRCC maintains assets in this District.
150. On 20 September 2019, the Liquidators, using funds belonging to the estate of FRCC,
sent a $25,000 retainer to an account held by Holland & Knight LLP.
151. In accordance with Bankruptcy Rule 1007-1, there are no known and pending actions
in the United States in which FRCC or creditors of FRCC are parties. I note that FRCC also does not
seek provisional relief against any party at this time. The disclosures required under Bankruptcy Rule
7007.1 are attached hereto as Exhibit 12.
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RELIEF REQUESTED IN THE UNITED STATES
152. In addition to recognition of the Cayman Liquidation as a foreign main proceeding, the
Liquidators respectfully request relief authorizing discovery pursuant to 11 U.S.C. § 1521(a)(4).
153. As a result of the inaction and potentially intentional concealment of information and
documentation by the FRCC Directors, the Liquidators have been unsuccessful in their attempts to
obtain the books and records of FRCC.
154. As the sole executives of FRCC, it is a near-certainty that the FRCC Directors will be
in possession of documents in the United States that will be relevant to the Cayman Liquidation.
155. For example, these documents will be invaluable in the Liquidators’ efforts to determine
the alleged value of the shares in FRGC and the supposed multi-million dollar liabilities of FRCC, as
well as ascertain information regarding the terms of the Assignment, and whether that transaction was
in fact an arm’s length transaction for full value.
156. The Liquidators may also have potential claims against the FRCC Directors and/or other
parties arising out of the management of FRCC and/or in relation to the Assignment and the Arbitration,
all of which are the subject of ongoing investigation (the “Potential Claims”).
157. For example, the Liquidators may have potential claims against the FRCC Directors,
FRGC, and/or FRUS if the Assignment was not an arm’s length transaction for full value.

134. Upon the commencement of the voluntary liquidation in May 2019, the powers of the
FRCC Directors ceased and all activities of FRCC have been managed from the Cayman Islands by
the Liquidators.
135. The liquidation of FRCC is primarily taking place in the Cayman Islands, where both
Liquidators reside. Except for the preparing of the Petition, all of the work to date relating to the
Cayman Liquidation has been conducted from within the Cayman Islands and all of the work is
supervised by, and ultimately subject to, the supervision of the Cayman Court.
136. FRCC holds assets in the Cayman Islands, in the form of funds held in a client account
of Conyers Dill & Pearman (“Conyers”) in the Cayman Islands. The Liquidators have hired Conyers
as Cayman Islands counsel and Holland & Knight LLP as United States counsel, each to assist with
the Cayman Liquidation.
137. The Liquidators have caused the requisite statutory notices, including a notice of our
appointment as the Liquidators, and filings to be filed, published, and served with the Cayman Islands
Registrar of Companies, the Cayman Islands Gazette, and the Cayman Court.
138. We have issued numerous letters, including to the FRCC Directors, requesting further
information regarding property derivatively impacted by FRCC’s estate, such as information regarding
FRGC’s assets and affairs.
139. In addition, we have requested FRCC’s books and records from the FRCC Directors,
who have largely failed to produce the books and records.
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140. We also have taken steps to investigate the potential value of FRCC’s only known asset,
being the shares in FRGC, by investigating the circumstances and parties involved in the PSC, the
Arbitration, the Assignment and the Farmout Agreement. The investigation has been performed
exclusively from the Liquidators’ offices in the Cayman Islands.
141. Although the FRCC Directors have largely failed to provide FRCC’s books and records,
or otherwise substantively respond to the majority of the Liquidators’ requests for information, the
Liquidators have performed a thorough review of the documents they have been able to obtain, and
those obtained from publicly available information through the Liquidators’ investigation, all of which
are stored in the Cayman Islands, to attempt to understand FRCC’s assets and investments.
142. The Liquidators have also spent time corresponding with stakeholders and responding
to their queries and concerns surrounding the Cayman Liquidation.
143. Based on investigations to date, the Liquidators are developing a litigation strategy with
Cayman Islands counsel.
144. However, further investigation is essential, in particular with respect to the
unsubstantiated debt of FRCC, the Arbitration, the Assignment, the Farmout Agreement, and any
FRCC assets in the United States.

122. For these reasons, among others, the Liquidators are the persons responsible for
representing FRCC in the Cayman Liquidation and in all related matters, including this matter, as its
“foreign representative” within the meaning of section 101(24) of the Bankruptcy Code.
B. The Cayman Court is a Foreign Court and the
Cayman Liquidation is a Foreign Proceeding
123. I also have been advised that a “foreign court” is defined in section 1502(3) of the
Bankruptcy Code as “a judicial or other authority competent to control or supervise a foreign
proceeding.”
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124. I respectfully submit that the Cayman Court clearly qualifies as a “foreign court” for
purposes of section 1502(3).
125. I understand that a “foreign proceeding” is defined as a “collective judicial . . .
proceeding in a foreign county … under a law related to insolvency or the adjustment of debt in which
proceeding the assets and affairs of the debtor are subject to control or supervision by a foreign court,
for the purpose of reorganization or liquidation.” 11 U.S.C. § 101(23).
126. The Cayman Liquidation clearly qualifies as such, as it is by definition a liquidation
proceeding pursuant to and governed by the Companies Law and the CWR, under the supervision of
the Cayman Court, and existing for the benefit of all of FRCC’s creditors and stakeholders.
C. The Cayman Liquidation is a Foreign Main Proceeding
127. Finally, I am aware of the requirements for recognition as a foreign main and non-main
proceeding under Section 1517(b)(l) and (2) of the Bankruptcy Code, respectively.
128. I believe that the Cayman Liquidation qualifies as a foreign main proceeding and that
the Cayman Islands is FRCC’s center of main interests (“COMI”).
129. As demonstrated by the facts included herein, I further believe that FRCC is engaged
in non-transient economic activity in the Cayman Islands.
130. As noted above, FRCC was formed as an exempt company under the laws of the
Cayman Islands. Since its formation, including at the time of the voluntary liquidation, FRCC has
maintained its registered office in the Cayman Islands.
131. I am advised that under United States law, this fact supports a statutory presumption
that the Cayman Islands is FRCC’s COMI.
132. There is considerable additional evidence that FRCC’s COMI is the Cayman Islands.
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133. The former sole shareholder of FRCC, FIC, is a Cayman Islands registered entity, and
FRCC’s principal asset is shares in another Cayman Islands entity, FRGC. FRCC’s former registered
office provider, Maples, as well as the collateral agent under the 2020 Notes and related loan
documents, MaplesFS, are both incorporated in and operate from the Cayman Islands.

113. Moreover, although the Declaration claims that the FRCC Directors have made a full
inquiry into the affairs of FRCC and that, having done so, they believe that FRCC will be able to pay
its debts in full, the FRCC Directors have failed to provide the Liquidators with sufficient financial
information for FRCC to enable the Liquidators to independently determine whether FRCC is solvent.
114. Given the continued failure of the FRCC Directors and FRGC to provide the requested
information required by the Liquidators to administer the FRCC estate, the Liquidators ultimately
determined that filing this Petition is in the best interests of FRCC and its creditors, and necessary to
enable the Liquidators to obtain, inter alia: (1) documents relating to FRCC in the possession, custody,
or control of the FRCC Directors and/or the Frontera Group; (2) documents and information relating
to the Arbitration and Assignment in the possession, custody, or control of FRUS and/or the Frontera
Group; and (3) documents relating to FRGC in the possession, custody, or control of the FRCC
Directors and/or the Frontera Group, in particular, those relating to the Assignment.
115. These records are crucial to understanding FRCC’s liquidation and its pre-liquidation
asset position, and transactions among FRCC, its principals, directors, subsidiaries, shareholders, and
other affiliates.
THE PETITION SATISFIES THE REQUIREMENTS OF CHAPTER 15
116. I have been advised that in order to qualify for recognition under Chapter 15, FRCC’s
Chapter 15 Petition must meet certain requirements. In particular, it must be brought by a “foreign
representative” in respect of a “foreign proceeding” that is pending before a “foreign court,” all as
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defined in the Bankruptcy Code. The foreign debtor also must meet one of the bases for qualifying as
a debtor under the Bankruptcy Code.
A. The Liquidators are the “Foreign Representatives” of FRCC
117. I am aware of the definition of “foreign representative” as referred to in 11 U.S.C.
§ 101(24) and believe that the Liquidators qualify as such.
118. The Liquidators are qualified insolvency practitioners who were appointed by the
Cayman Court pursuant to the Companies Law and the CWR to act as the official liquidators of FRCC.
As such, the Liquidators act under the supervision of the Cayman Court. To that end, the Companies
Law expressly limits the powers excusable by the Liquidators without prior sanction by the Cayman
Court.
119. Moreover, the Liquidators are charged with administering and liquidating the business
and assets of FRCC and acting on its behalf.
120. The Liquidators also are authorized to take control of its subsidiaries such as FRGC.
121. In addition, the Supervision Order explicitly permits the Liquidators to file this Petition.

102. First, the Liquidators have served notice of either the voluntary liquidation, the Cayman
Liquidation, or both, on, among others: (a) FRCC’s registered office in the Cayman Islands; (b) each
of the Parity Lien Debtholders (as defined in the Note Agreement); (c) FIC; (d) FRGC; (e) MaplesFS,
in its capacity as the registered shareholder of FRCC; and (f) the FRCC Directors (the “Notices”). True
and correct copies of the Notices are attached as Exhibit 10.
103. Second, the Liquidators have requested that the FRCC Directors deliver FRCC’s books
and records to the Liquidators and prepare the statement of affairs in accordance with section 101 of
the Companies Law (the “SOA”).
104. Importantly, in accordance with section 101(7) of the Companies Law, a person who,
without reasonable excuse, fails to comply with an obligation imposed under section 101 of the
Companies Law commits an offence and is liable on conviction to a fine.
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105. The SOA was required to be delivered by the FRCC Directors on October 8, 2019. As
of the date of this Declaration, the FRCC Directors have failed to deliver the SOA, nor has any request
for an extension been received. The FRCC Directors have also failed to deliver FRCC’s books and
records.
106. As such, the FRCC Directors have violated section 101(7) of the Companies Law.
107. Third, the Liquidators changed FRCC’s registered office address (also in the Cayman
Islands), to c/o FTI Consulting, Suite 3212, 53 Market Street, Camana Bay, Grand Cayman, P.O. Box
30613, KY1-1203, Cayman Islands. As noted above, FRCC maintained a registered office in the
Cayman Islands since its inception, and thus, at the time of the voluntary liquidation.
108. Finally, on September 30, 2019, the Liquidators published statutory public notice of
their appointment in the Cayman Islands Gazette. A true and correct copy of this statutory notice is
attached as Exhibit 11.
109. Nonetheless, as described above in connection with the Liquidators’ ongoing attempts
to obtain information from the FRCC Directors and FRGC, FRCC’s primary assets are still being
investigated.
110. In particular, the Liquidators are investigating, inter alia, the assets and liabilities of
FRCC (including the status of newly-revealed inter-company loans among FRCC, FRC and FRGC),
the identity of creditors of FRCC, and the solvency of FRCC, all in connection with the liquidation of
FRCC.
111. The intransigence of the FRCC Directors and others in the Frontera Group has
significantly hindered this investigation and the overall administration of FRCC.
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112. As just a few examples, the FRCC Directors have not clarified or otherwise explained
any of the information in the one-page Declaration, nor has any information been provided on the
purported $2.2 million of notes pa

90. The Liquidators also requested confirmation that FRGC would not accept any further
instructions from the FRCC Directors without written authority from the Liquidators.
91. FRGC did not respond. Two weeks later, the Liquidators wrote to Maples, the
registered office provider of FRGC, requesting FRGC’s formation and other statutory records.
92. Maples provided these records.
93. Otherwise, no information has been provided that adequately deals with the Liquidators’
specific requests concerning FRGC, including but not limited to the Farmout Agreement, Assignment
and Arbitration.
94. In sum, the vast majority of the documents and information requested from FRGC
remain outstanding at the date of swearing this Declaration.
E. The Petition for Supervision and the Appointment of the Joint Official Liquidators
95. In light of the lack of cooperation from the FRCC Directors and FRGC, the Liquidators
determined that petitioning the Cayman Court for an order that the liquidation of FRCC be brought
under its supervision was in the best interests of FRCC and its creditors.
96. On July 24, 2019, Mr. Morrison and I, as JVLs, petitioned the Cayman Court for a
supervision order and our appointment as Joint Official Liquidators (the “Supervision Petition”). The
Supervision Petition was supported by my Second Affidavit, which was filed on the same date. A true
and correct copy of the Supervision Petition is attached as Exhibit 8.
97. On September 5, 2019, the Liquidators, as JVLs, filed further evidence in my Third
Affidavit to update the Cayman Court on the JVLs’ efforts to administer the affairs of FRCC. A true
and correct copy of my Third Affidavit is attached as Exhibit 9.
98. On September 12, 2019, the Cayman Court granted the Supervision Petition and issued
the Supervision Order, resulting in the official liquidation of FRCC.
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99. As set forth in the Supervision Order, the Cayman Court, inter alia, (i) ordered that
FRCC be wound up in accordance with the Companies Law and under the supervision of the Cayman
Court; (ii) appointed Mr. Morrison and I as the official liquidators of FRCC; (iii) authorized the
Liquidators to commence proceedings in the United States for recognition of the Cayman Liquidation
and their appointment; and (iv) allowed the Liquidators to take control of FRCC’s subsidiaries, such
as FRGC. See Supervision Order ¶¶ 1-2, 8, 9(b).
THE PROGRESS OF THE CAYMAN LIQUIDATION AND THE INVESTIGATION
100. Following entry of the Supervision Order, the Liquidators continued to work from the
Cayman Islands to wind-down FRCC for the ultimate benefit of its creditors and all additional
stakeholders.
101. To that end, the Liquidators have taken the various steps required under the Companies
Law and the CWR.

77. On May 16, 2019, Bakhutashvili responded and indicated that he and the FRCC
Directors were in the process of collecting the books and records of FRCC.
78. During the May 23, 2019 conference call (as referenced above), the FRCC Directors
reiterated that they were compiling the books and records and would provide them as soon as possible.
79. The FRCC Directors subsequently provided the Declaration, but, despite previous
representations and assurances, did not furnish the books and records.
80. Consequently, the Liquidators requested that all outstanding information and books and
records be provided by June 7, 2019, failing which the Liquidators would have no option but to consider
applying to the Cayman Court to bring the liquidation under its supervision.
81. The FRCC Directors subsequently delivered various documents. However, with the
exception of an undated balance sheet for FRCC and an expired contract, all other documents had been
previously provided.
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82. Upon review of the materials, it was clear that documentation fundamental to
understanding FRCC’s financial position and its affairs generally was missing.
83. Consequently, the Liquidators requested eight specific examples of the types of
documents we would expect to be available. This request also highlighted that the FRCC Directors
still had not provided the Liquidators with any details of FRCC’s creditors or if any creditor(s) existed.
84. Over a number of weeks, the responses of the FRCC Directors or their United Statesbased
legal advisors, were again inadequate.
85. The latest production merely consisted of the previously provided consolidated financial
statements, copies of director and officers’ insurance policies, loan agreements between FRGC and
FRC, and FRGC and FIC, respectively, the Farmout Agreement, and a two page memorandum which
appeared to document the rationale for the decision to enter into the Farmout Agreement, and certain
non-substantive documents relating to the Assignment and Arbitration.
86. Aside from the insurance policies, these documents did not address the specific requests
in the most recent correspondence. Rather, the production raised more questions than answers, in
particular in relation to the purported intercompany loans among FRGC, FIC and FRC.
87. No further substantive response was received from the FRCC Directors.
ii. FRGC
88. As the equity of FRGC represents FRCC’s principal asset, the Liquidators have
necessarily and understandably sought reasonable information from FRGC in relation to its financial
position and affairs generally.
89. A day after their appointment as JVLs, the Liquidators informed FRGC of their
appointment.
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65. Since the correspondence with the FRCC Directors in late May, the only update received
from the FRCC Directors related to a change in legal counsel (discussed below at paragraphs 67 to 69),
despite the FRCC Directors expressly agreeing to provide the Liquidators with updates.
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66. This is a glaring omission, as the Liquidators have independently learned of multiple,
material developments in the Arbitration.
67. First, the Liquidators were informed on July 9, 2019 by Akin Gump that it ceased acting
for FRGC in the Arbitration a month earlier on June 9, 2019. I would have expected the FRCC
Directors or FRGC to have promptly brought such a material development to the attention of the
Liquidators.
68. The FRCC Directors have not explained the failure to disclose this information.
69. In addition, the Liquidators only learned on July 19, 2019 that FRGC had hired new
counsel in the Arbitration following a direct question on the subject to the FRCC Directors on July 18,
2019. Again, the FRCC Directors did not explain why this material information was withheld. It has
also recently been brought to my attention that the new counsel is no longer acting in the Arbitration
and that this had led to an adjournment of the hearing earlier this month. No update on these
developments has been provided by the FRCC Directors.
70. Withholding critical developments concerning the Arbitration, including the
substitution of counsel that could materially impact upon the effectiveness of FRGC in defending the
claims of the Georgian Government while pursuing the Counterclaim, is emblematic of the FRCC
Directors’ conduct to date, and is yet another reason that the relief requested in this Petition is material
and necessary to a fair and orderly proceeding in the Cayman Liquidation.
D. A Summary of the Frontera Group’s failure to Comply with the Liquidators’ Requests
71. In addition to information specifically pertaining to the Arbitration and the Assignment,
among other topics, Mr. Morrison and I have repeatedly attempted to obtain general information from
the FRCC Directors and FRGC.
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72. These requests have largely been ignored, or the responses are noncompliant or worse,
potentially misleading.
73. The following is an overview of the ongoing attempts to gather information from the
FRCC Directors and FRGC.
i. The FRCC Directors
74. On May 2, 2019, the Liquidators served notice of their appointment on Maples, in its
capacity as a registered office provider for FRCC.
75. We also notified the FRCC Directors of our appointment on May 7, 2019 by email and
courier on May 13, 2019.
76. The notice contained a request for the FRCC Directors to make arrangements to deliver
FRCC’s books and records and to provide the Declaration.

58. First, although the FRCC Directors provided the JVLs with an undated Declaration of
Solvency on May 29, 2019, declaring that they made a full inquiry into the affairs of FRCC and that,
having done so, they believe that FRCC will be able to pay its debts in full (the “Declaration”), they
have failed to provide the Liquidators with any substantive financial information for FRCC that would
validate or rebut this claim. A true and correct copy of the Declaration is attached as Exhibit 7.
59. Accordingly, the Liquidators cannot accurately determine whether FRCC is in fact
solvent, nor make any evaluation as to the validity of the FRCC Directors’ claims to this effect.
60. Furthermore, the Liquidators consider that the FRCC Directors (acting both in their
capacity as directors of FRCC and its subsidiary FRGC) have either deliberately withheld important
information, or have not been as forthcoming as they should have been, especially in connection with:
(i) the Farmout Agreement and Assignment, a material transaction divesting FRGC of its only
significant asset shortly prior to the commencement of the Cayman Liquidation; (ii) the Arbitration, to
which the Liquidators understand FRGC remains a party despite FRGC’s attempt to substitute FRUS;
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and (iii) FRCC’s apparent liabilities to unknown creditors of $2.2 million, described on FRCC’s singlepage
unaudited balance sheet only as “Notes” (the “Liabilities”).
61. These issues will have a fundamental impact upon the realizable value of FRCC’s
principal asset, the investment in its wholly owned subsidiary, FRGC, and, overall, FRCC’s solvency.
62. In addition, the FRCC Directors have been no more forthcoming during discussions
with the Liquidators.
63. For example, on May 23, 2019, a member of my staff and I conducted an introductory
call with the FRCC Directors, during which the FRCC Directors informed us that:
(i) FRCC is the sole shareholder of FRGC;
(ii) FRGC’s sole asset and income is derived from a “royalty” relating to oil and gas
related interests in the Republic of Georgia;
(iii) That royalty has an annual revenue of “hundreds of thousands and possibly
scaling up to millions over time”; and
(iv) FRCC is solvent and without any significant liabilities.
64. As explained above, at no point during this conversation, did the FRCC Directors
reference the Arbitration, the Farmout Agreement, or the Assignment, notwithstanding the clear impact
these proceedings would have on the value of FRCC’s shares in FRGC and the Liquidators’ realisation
strategy.
v. The FRCC Directors Again do not Provide Information relevant to the Arbitration

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