Member Info for Moleinahole

Tenners if FRR held certified and by that I mean bankable P1 reserves in Georgia we would have had no issue raising $4m to pay Outrider interest bill! The reality is that we have a couple of old CPR and some updates but there are no certified bankable reserves on FRR balance sheet that anyone has verified.

TSBS I would go further than unacceptable.
Do not forget that FRR have destroyed the value of their shareholders and bond holders in 2005 and 2010/11. The pivotal moment for me was when Outrider became involved. Previous bondholders sold out with a heavy loss to them. Outrider I suspect wish they had never found FRR if you asked them. The mystery Varang farm out followed. To this day we do not know the truth about that arrangement. Between 2011 and 2016 FRR did more limited drilling in taribani, Mtsare and Mirzani but never achieved any sustainable production volume. All the money raised in that period went mostly into General expenses not drilling. As the bonds came up in 2016 - FRR having already diluted shareholders to pay service providers like Uniserve tried their first attempt to cancel the bonds. That failed and left the shareprice on the deck. The deal with Outrider to get going again in 2017 was never acurately reflected. Everyone was left to assume it was broadly on the same terms as reported as pre 2016 notes. Steve and Zaza were forced to convert debt to unsecured shares and YA to preference shares.
After a further huge dilution shareholders continued to support the company to get the 4 well 2017 and 2018 campaign underway. Off the back of the renewed optimism and increased shareprice YA disposed and recovered their debt as did small local suppliers. Everyone sold as quick as they got shares and PI's bought them. PI's continued to hold while in the background the true financial position was a mess. A director resigned over it (reason not reported) and FRR twice agreed with Outrider to defer payment of interest which meant it was not visible that anything had changed. First indication something was not right was YA attempt to suddenly try and get all their remaining debt out by effectively pre-selling the debt. Then by end sept as the interest date arrived and Outrider were seeking the shares in lieu from Steve and Zaza they instead of giving them shares from headroom we still had initiated a confrontation by seeking to avoid the notes through litigation. That may have been the only way out if there really was no other way to fund things due to the arbitration dispute and Outrider security. Nonetheless Zaza still executed a secured deal with Green in 2018 to supply oil worth $5.8m. I'm mystified where that money went. It was not obvious in the half year accounts for 2018. However, something odd had happened to the debt and revenue numbers were lower than expected but still conceivably lagging the drilling. Had we ever got to see the 2018 full year issued end June 2019 it would have been clearer. We never got there as the shocking contents of Steve submission on the Cayman case undoutably caused the nomad to resign locking us in.
In the run up to that we were kept interested by the 2 majors and the New York fund. You should never default on a secured loan. The bond should have been written off in 2010 but Steve had some

Fire that was a useful contribution to the debate. Why don't you actually read what I said more carefully. Try and actually respond with some alternative argument of why you obviously think past confrontation with the board would have been productive and whether you think that would have changed the outcomes here.

Those who have in the past and do today advocate a litigious approach cannot expect others to lead it on their behalf and take on the effort and potential liabilities. It's as simple as that as far as I am concerned.

Given the security around the default I suspect there is in reality nothing that we could have done the moment they decided to default.
The added problem with FRR is the Cayman registration and shareholders unfriendly articles. We have virtually no rights that are of any use.

I notice a few comments today
First, Star I assume must mean another shareholder group as I can't recollect anything from FSHG that could be construed in anyway as attacking anyone.

Second, let us be absolutely clear. The FSHG is not a shareholder action group to engage in litigation. That is simply not in the mandate for the group. I know some people would like that to be the case. If people want to engage in litigation they MUST form and constitute a separate group. There has never been any block or inhibition to people doing that at any time since 2018. Its up to those who talk about doing it taking the lead if that is how they feel.

The company has failed shareholders and has simply refused to engage with either a well constituted Group of shareholder or all shareholders via RNS R. That has been regrettable, a mistake and in my opinion unacceptable. In the past decade I have been invested Steve has made a point of not engaging with shareholder groups. Quite why a recent contact has been established with several random email contacts they did not know rather than a group where the board including Steve had met several in person I am simply unable to explain. So its not about not having a spine as you put it - its about not having a mandate.

There are reasons for caution on becoming litigious.
1. While the company had prospects of securing the block for all shareholders any such action clearly risked making a bad situation worse.
2. If relations are bad now they would be irrevocably broken once litigation starts. Then if you were to launch action against the directors and they resigned or removed are you ready to take over the company and stand as a Director in this mess?
3. The nomad is often named as a target. I would add to that PWC who did the 2017 audit. They have not gone anywhere since 2018 and will outlast the current events. But read the responsibilities of a Nomad first https://docs.londonstockexchange.com/sites/default/files/documents/aim-rules-for-nominated-advisers-july-2018.pdf see page 20 and you decide what the Nomad has done wrong here to breach rule OR2. I would expect auditors like PWC to have done more.

4. If your target is the board (and I think they are culpable) simply observing the current difficulty and time on the two existing cases involving the directors should indicate while you might think its easy – it is not. They have clearly already made it hard to even serve let alone get anywhere near a court or any prospect of recovering money. Of the Directors in the end the only one with anything may be Hope. He was on the board when the accounts and RNS were issued and may have benefited by the omissions. If you fight them they have insurance.
5. Ya clearly knew more. And largely got out.

Even if its on a no win/no fee case the burden and risk could be large. Testing the water to get some opinion makes sense but a new group would need to be constituted to take a lead on that.

Whamboy the problem is they have not stopped the liquidation. Forget whether Zaza is this or that - that is irelevant and to some extent noise.

Its hard to see how the company unwind the Cayman liquidation let alone the facts on the ground in Georgia with the asset now in Green clutches. Green may yet find GOGC bars them but that just brings Uniserve into play and may end up with GOGC taking 100% of the block.

For FRR to get this back is going to require a major left field surprise (like a major deal or funding) or monumental political and legal effort. All when the license is all but expired. Is Steve up to that - how does that happen who would invest? Well the past two years have shown fight to save the 1% but they then lost even that to FTI. How this is being paid for to fight is also now a total mystery. The TRO is a start - but its not in the area that makes the most difference.

If its not the end then its an absolutely devastating development - FRR seem to be trying to get a grip via Zaza link to Green but I'm not sure thats enough (and like others I still don't quite understand the Zaza connection to that anyway other than the money from 2018) as with Cayman in Q4 2018 we saw restraining orders are not enough. You actually need a case at the end of the day.

FRR wanted the asset transferred to FRR US. That was blocked. They seem to want to unwind the developments in Cayman and Georgia which FTI have overseen and turn the clock back. FTI have done what they have as a result of the default and FRR inability to restrain them. Steve signed the papers in 2016 giving them security with the associated consequences. They are not even on the pitch in the Cayman case as FTI have simply bypassed them post the arbitration.

Bugsy I'll keep coming back - the real problem remains they have drilled 4 major wells in 2017/18 and not generated any revenue. That is the real underlying problem. After 20 years and $400m spent they still don't know how to drill block 12 and failed to produce a bankable CPR or attract a partner.
Collectively they then lost leave of their senses by engaging in a war of words with their partner and regulator and default their main creditors. In the end the final wild claims of 2 majors and alternative funding and unrealistic plans that kept the pot bubbling right to the end is what I think is hard to fathom.
Steve I broadly blame for the drilling strategy and past failures leaving the company in a financial mess. Even now he seems to still think its one more go to unlock the block. Zaza was wheeled out as the PT Barnum for the final tour after 2016 when they played fast and loose with shareholders for a final desperate and disastrous time.
Whether people claim to have "seen through people" or not and when is moot - I defy anyone to have envisaged anything like what has transpired here. The board have collectively failed all their stakeholders. Given this company has purported to represent western values and aligned itself politically and effectively using Atlantic Council and US Chamber of Commerce and US Political backing they have failed not just your normal employee and shareholder stakeholders which is what makes this company highly unusual.

TSBs Uniserve did very well out of shareholders in 2016. They conveniently were given per the post of the RNS alot of shares that they proceeded to trash the shareprice pre the original default with Outrider in 2016. They appear to be a broadly legit local service company - if like everything FRR hard to pin down. So they seem to have been a claimant into the liquidation pot possibly as they had unpaid invoices. They showed no loyalty in 2016 to FRR.

Green is the murky one I don't like of the two. Uniserve seem to have made an offer like Green in the carve up by Outrider and FTI of the assets in the liquidation pot. As they have operational experience but no money maybe they have more chance of passing the test fro GOGC. I expect FTI have got hold of funds from bank accounts and other assets like kit on the ground and may even have been able to take any production post getting control in the liquidation pot.

We simply don't know what everyone has now extracted or what terms be it cash or % of future production as a royalty. green previously offered 5% to FTI but that was part of a 50/50 involving FRR US. I find it hard to believe Outrider have not extracted some value here and left Green to walk away with it all.

So number 1 question is if Green really paid FRR $5.8M for an oil contract in 2018. Why was it not used to settle with Outrider the interest?

Where did it go? What was it spent on? It was not used to pay staff? Was it used to fund litigation or executive pay? The company was down to $50k in dec 2018 per Hope - we could not pay the New York funds arrangement fee at that time. So I'm puzzled. When was this $5.8m paid to FRR?
If the transfer was not fraudulent to Green then the money needs to be accounted for. What happened to production post December 2018 to present day? That should be another $3 to $5m a year. Was no oil produced or did either FTI or GOGC take it? The laid off workers suggest no oil till recently when the tankers were blocked. Why take an oil contract out and then produce nothing? Who was responsible for that contract?

Why on earth did Steve send covid relief money $2m to Zaza if they were not in control of the company at that point and not able to get production going?

This all starts to add up. Have FRR at any point since March 2020 been in control of any operations on the ground?
If Zaza has been playing a game of double talk about who he really represented in his inflamatory media campaign post the arbitration then I'm beyond disappointed at such an unprincipled stance.

Njames the must reads of the past few months have always been Steve submission to Cayman and the what some believed was a spoof arbitration report.

Both of those paint such a chaotic and black picture that I have been very concerned since it was issued here. While some chose to focus on politics I've long thought our fate lay in Cayman and US courts. The political good will is useless without a competent management team with a plan. They should never, ever have defaulted. End of. However, by 2017/18 they had to do something to try and get the license renewed with operations and you have to acknowledge that with shareholder support FRR managed a final fling in block 12. Unfortunately, to big up the final fling they have sucked in even more small investors into a very high risk game where investors were left unable to properly calibrate the risks. The loan note risk not knowing the true terms and the downplay on the license terms (which turn out to be exactly per the PSA extracts we had seen) meant 2017/2018 campaign had to succeed. When it didn't we have been left holding the baby by the immediate suspension and delist on nomad resignation. Once they read the attachments on Steve submission the Nomad would I suspect been as horrified as I was and I was not at all surprised they resigned and we then struggled to line up a replacement in time. The contents of the emails and docs in Steve's Cayman submissions and the arbitration is damning and embarassing material.

They have been unable to find a way out of the mess they created and simply ran out of road. It will be galling now if Green get an extension and go on to get some value out.

Pyro I've been suspicious that the $5.8m debt was always close to what Outrider paid for their notes.
I would not assume they have lost. Anything that went into the liquidation pot will have been shared with them as biggest creditor. Steve also had notes (but possibly not as secured) so he may even have had a share here.

If so the outcome since 2016 has seen small suppliers paid in full. YA extract more than what they were owed and Outrider could yet have got back what they originally put in. But the unsecured creditors, employees and shareholders are the big losers.

Any journalists who want the story now have the missing pieces in public domain if they are prepared to link them together and this looks very bad for the United States. They have publicly backed a company politically that has imploded internally due to a mix of incompetence, persistent bad luck, bad judgement, poor Geology and then further fallen victim to a mix of destructive shorting and opportunist destructive hold by a corporate raider in Outrider who I have little doubt have made the possibility of restructuring over the past few years nearly impossible.

I'm looking forward to the explanation from FRR of why FRR knew nothing about what FTI were up too in March when the block was effectively auctioned. They seem to be so far behind events its frightening.

Green, Uniserve then GOGC.

Green and Uniserve seem to have made offers to buy the shares out of liquidation.

Green seem to have "legally" taken the asset as a result of FRR defaulting on the debt and losing control of FEGL through FTI liquidation activity.

I'm not sure where it goes from here. The weak California case is all we have left.

Between Steve and Zaza they appear to have lost a second license for Frontera shareholders.

My my what a mess. Thats the document we needed OOPSI.

First I see Zaza may have finally placed the arbitration document in the public domain as Exhibit E. For those who have not read it and want a back story then that is a must read.

My darker theory that FTI knew of the goings on in Georgia seems to be correct. Zaza whether directly or loosely connected to Green has presided over the prising of the asset off us as FRR shareholders.

Looking at the nicely laid out submission by Zaza. The key submission to read is exhibit B - we have not been able to trace Cayman court activity before. So this all goes back to 2018 when somehow Green signed a oil contract with Frontera Georgian then under control of the FRR Group. Presumably this occurred in Q3/Q4 2018 as the dog chased the car. Once all the staff were laid off and no oil produced the contract has failed to be performed. Quite how that has translated into a total loss of the field via the liquidation process is the mystery. If no oil was delivered why did that result in a security that trumped Outrider own security? The read of exhibit b presume that is what has been posted helps.

Plan a was the court action against Outrider.
Plan b was the FRR US transfer.
Meanwhile the Green bomb was ticking in the background. Not worthy of an RNS but deadly like the interest.

Either way this looks like FTI have waited till the arbitration report killed the FRR US move and then FTI have sanctioned the transfer to Green following some sort of auction. FRR have failed to regain control of FEGL which held the license via FRR US once the transfer was blocked and FTI held the shares. I note the Uniserve service company also pop back up who we paid huge sums in shares in 2016.

The contract to supply potentially won't have cost them anything or at worst the marginal cost of buying some oil if they ever had onwards contracts of their own.

This looks like a total disaster for the honest and decent shareholders. If true this is a total disgrace. I'm struggling to see how a restraining order works here. Green needs repudiating in same way as FRR US was for inability to meet terms of the PSA. Hence GOGC have a key role to play. Quite what case FRR intend to make is going to be interesting.

GOGC action would probably leave the field vacant. We are hanging by a thin thread now. But Outrider also look out of pocket here unless they got something from the liquidation agreement.

Total disaster. FRR have failed to stop FTI liquidating the company over a small interest default.

Madpunter GOGC will have alot if not all the data in my opinion.
The well logs and surveys I think will go with the field and have to be handed back if they have not already got it through the 50% holding in FEGL.
FRR got all the Soviet data and I suspect the next operator will do likewise with FRR data. So I would not pin any hope on value in that.
This is a complete mess. Given Steve and Zaza links to US politicians, Atlantic council, NATO, US chamber of commerce this is fast becoming a political and commercial scandal. The main winner in that is Russia. The way it's panned out it reflects very badly on Georgia as an investor safe country. However, it is becoming clear the more you see that none of the main players have exercised the care and diligence shareholders deserve from people who have represented not just the company but western interests in Georgia. Collectively they are an embarrassment to their respective countries national interests.
Legally this looks difficult and to protect reputations and interests Steve needs to be phoning friends to sort it out.
The lot of them from FRR board through to Outrider and FTI have indeed caused a scorched earth of block 12.
It's hard to see even if current events are reversed where FRR as a company goes from here. Who in their right mind would trust them with a loan? Total sale is only option and at moment with under a year on the 1% and no real prospect of large scale development it's worthless. A short term smash and grab to extract $5m a year of oil makes sense via Green if you can get away with it.

Well something doesn't add up here.
The missing bit is why Steve seems unaware of the FRR US transfer being blocked by the Georgians. The reason is in the arbitration outcome. Why it was not then allowed and registered once the 1% was left is the curiosity. Steve thinks it should have been.
The reason Zaza remained in place is I suspect the fault of FTI who left FRR in management position. The non registration of the transfer always left this in an ambiguous state. The nature of the alleged $5.8m debt also remains a mystery. You wonder whether it's Zaza back pay! Without any accounts since 2017 we have no idea what has happened.
It sure looks like a fraudulent transfer to the detriment of creditors and shareholders.
Just when you think the mess could not get more complicated it does. The irony that Steve is now fighting for an asset that could then be lost to Outrider is unreal.
And Gogc may also be broadly aligned as well is surreal.
Reflects badly on US and Georgia.

Earsbern the last we heard was they were pressing on with winding up the companies that have fallen into their clutches. But they went to the judge for him to sanction something ( I read that as agree an action possibly if there was a disagreement between creditors on something in the liquidation?). We don't know what that was but timing wise it was around the same time as the changes in Georgia with the green smash and grab on FEGL and block 12.
If FTI were not involved in the Green transaction in any way then its inconceivable they would allow the asset to slip away for their creditors without looking at all the angles including a fraudulent transfer to evade creditors.

I see Steve has performed one of the usual kick the can down the road on the court case with Zaza.

TSBS - even if the secured Outrider debt ends up getting transferred somehow beyond the reach of FTI - it would invariably mean the group company we have shares in is also insolvent as beyond the $40m there is over $10m of other group debt with no income. So we would need to know whether we still have any economic interest in block 12 or how we have lost it over an unknown debt that Green has been able to secure above Outriders own security.

Per RNS in 2016 "The New Notes are issued by Frontera International Corporation, a fully-owned subsidiary of the Company, and bear interest rate of 10 per cent. if paid in cash or 12 per cent. if paid in-kind with additional notes at the Company's election. The New Notes, which are not convertible into ordinary shares of the Company, are secured and, in aggregate, have a face value of $30,063,276 and an effective date of 1 August 2016. Other than the terms described above, the terms of the New Notes remain materially unchanged as previously announced. " (Apart of course as we now know it was not really at the company election and interest was actually due in cash on the notes (its how you read it that you realise its incomplete rather than inaccurate) and shares at a later date had been pledged as personal security by the directors - they also omitted to say they had secured it through the shares (not ordinary) of the companies holding block 12.

As the debt was secured through the shares in the FRR entities that held the shares in Block 12 . Hence the puzzle if the asset is gone how can the group company not be insolvent and why has noone tried to wind it up? The only explanation I come too is that no one dares wind it up for fear of meaning everyone gets nothing and FTI are still wary of the California case. Maybe with no prospect of easy recovery Outrider won't/can't fund FTI? Without block 12 there are no assets even for more secured debtors let alone shareholders.

So while the Green team seem to have prized it away we have no idea where we stand. The GOGC list of companies simply adds to the FRR missing in action enigma.

Indeed WellOiled its the Green Capital security/farm out bit that is the gap.

We first knew of a Green entity and a security through FTI. Security I took must be security on a loan of some sort. There had to be some consideration to grant block 12 as full security surely! Given the shares for block 12 had already been pledged by FRR as security under the Outrider mortgage its puzzling how that security could gain precedence over the existing security that was in place. Outrider had been relying on holding the FRR shares in FRCC and control of FRGC and the Hope board veto. While hope was off the board and before enforcement of the Outrider security Zaza pounced.
We can see evidence of the FRR US transfer from FRGC in the Georgian registry. Registering the transfer of share in FEGL was repeatedly blocked. The FRR US or FRGC to Green part is the missing part. FRR US appear to have transferred something to Green - FTI believe that occured but its not been till the last 2 weeks we have seen Green suddenly be able to force the transfer of FEGL share of block 12 through by going to court - such that 100% of FRGC (or FRR US) interest has landed with them.
How that transaction occured and how we and all other creditors fit into that is where the trail has currently not turned up anything.

FRR board or FTI must know something more - we are at the limit of what we can find unless we can track it back through the Georgian Court cases or something pops up in Zaza vs Steve case or FTI ones.
The strong circumstantial evidence is of a link between Zaza and Green however. Conversely FRR and FTI comments seem to indicate they are not linked to Green.
Hence my conclusion that unless games of bluff and double bluff are at play here then as of today it looks like Zaza and some Georgian interests have so far been able to grab the ball and attempt to run off with it.
You would expect an attempt to try to blow the whistle on that - but depending on who really is behind Green unwinding it may not be easy. We can only hope that its some sort of clever plan and not what on the face of it looks like a bold attempt by a former director to put the asset beyond both shareholders and creditors.

Quite unbelievable. And finally just because people are fighting over the box does not tell you how big the box is or whats in it. This lot I think would fight over a matchbox with a pea in it.

Rainbow I'm sitting on a large total loss here. I don't share your optimism. Even if FRR still had block 12 it needs significant funding to repay debt even before you could progress.

If you have not read it I strongly recommend a read of the mail package that Steve submitted as "evidence" for the Cayman case. I felt almost physically sick after reading that.

When people owe alot of money everyone needs to be careful what they do with an entity to ensure you can extract as much as you can. FRR continued survival as an entity in Cayman without a recognised asset is only possible because creditors in reality also have few options and the Cali case is outstanding.

I'm not going to rule out some bizarre left field development here but as of now our best chance here is if we have either got a chance in the Cali case against Hope for damages (not seen a strong case personally yet) or Green turns out not to be some two bit set-up and there is a chance of funds either from future royalty or sale proceeds that exceeds debts of group assuming they have not simply appropriated the asset.

The reason debtors are active against directors personally speaks volumes to me about the likely asset position of FRR as a company I'm afraid.

I fear FRR have squandered shareholder funds and run up unmanageable debts on a mix of general expenses and a so far unsuccessful sporadic drilling operations on a field majors or partners are not interested in either because of FRR and Outrider history or the geology. Which is in reality why we are where we are. Had any of the drills over the last 20 years delivered sustainable flows that would not be the case. In the end FRR have still been unable to deploy the right technique in the right zones to crack block 12. It needs more time, different techniques and money something FRR ran out of in 2018 when FRR could not pay the interest, could not attract a partner and Outrider refused to roll over the interest again.

There was a short period in Q4 2018 and Q1 2019 to thrash that out to carry on but they have simply been unable to do that resulting in a spiral into chaos and litigation which we are still trapped.

Just had a few moments to look while having a tea.

That looks very similar to me to an extract I looked at 2 weeks ago. Whatever a seizure/prohibition means in a Georgian registry entry is a question I spent a bit of time investigating then. The seizure when I last looked was a different entity to Green. The prohibitions from around June were all Green.

Whoever Iva is has requested an extract of the registry as of 15th and has been given it. Its just information.

The key bit is that it still shows Zaza in position as MANAGER of FEGL and Green as 50% owner with GOGC . That just confirms what we already know. Zaza was left in position by FTI.

To recap:
FEGL is the joint operating company that owns the Block 12 license and does the work on the ground. It was 50 % FRR and 50% GOGC.

The 50% FRR share used to pass through FRGC and FRCC back ultimately to the FRR parent in Cayman which we hold shares in.

FRR attempted the transfer the 50% out of FRGC into FRR US and then to a Green entity in 2019. That occurred per the company while Hope off board and before the mortgage was enforced but the Georgians never accepted and registered the change. Since then FRCC and FRGC have been controlled by FTI investigating the transfer. FEGL has carried on (in my opinion doing nothing) with Zaza still in position as FTI have not replaced and FRR seem not to have asked or not been able to register his replacement. I suspect most staff in the field were employed by FEGL.

Green have managed however to transfer the 50% out of FRGC and into their own Green (non FRR entity). FEGL still exists but as of today FRR have no interest in Block 12 UNLESS Green is in some way associated with FRR OR owe money /royalty to FRR and FTI (Outrider) and other creditors so we have an indirect interest in the asset.

FTI security on the outrider loan was through FRCC - so loss of the asset (if they were not involved) would be a major blow to them as well as the other creditors let alone us as FRR parent shareholders.

If a director has been associated in effectively a transfer of assets beyond other creditors you can expect that to be challenged robustly. But I keep coming back to where the security interest that enabled this came from, how could Green be capable of fulfilling the technical and monetary obligations that FRR US (effectively the current licensee) were rejected over. It looks to all intents and purposes as if its one rule if your western and another if your Georgian (perhaps you need the right connections). Zaza having lambasted the Georgians for just that sort of thing means this to me still doesn't quite add up.

Creditors pursue FRR or Steve and Zaza personally in US for debts or guarantees. FRR Directors are also being sued by Zaza on our behalf for breach of duty with allegations around covid loans and FRR directors. The orginal FRR vs Outrider case in Cali is unresolved.

I suspect this is just the list of charges/interested parties or equivalent to the asset. The full extract of the register includes what I believe to be the charges where people like banks have an interest in the asset as a charge/security or notifiable interest .
I would expect Green after taken over to be owner of interest and not have a charge/interest if they had one before as they now have the share.
If it's an extract from register you can usually see who requested it.
Not got time today to look at the registry till later as about to start work for the day.

Welloiled you have followed the same journey I have done around the documents.

The key bit I think was the bit in the arbitration report that confirmed FTI did not replace the FRR directors in the Georgian companies they got the shares in. That means it is very likely Zaza remained on FEGL and FRCC and FRGC management/boards even when FTI had taken control of the shares - hence why in Court. The FRR US farmout went through legally in FRR own corporate due process - it was the only asset transfer that was blocked by the Georgians - the arbitration confirmed approval by Georgians was required. That has left the share in Georgian under FRGC - FRR could not remove Zaza from FRGC as that was under FTI control. FRR attempted the transfer again just before the court case but it was swiftly rejected yet again. Yet the Green case was processed in record time with no such issues raised.

That in itself is baffling and hints at a bit of favourable local treatment. The puzzle then is why. Why was that waved through but FRR US blocked - especially if Zaza is related to Green in some way - given Zaza protracted war of words with Georgia then its even odder. FTI might not have known but should have.

We are still none the wiser about how Green gained a security and how it relates to FRR US - but I take its a charge on the assets. Like Outrider they could have picked up a secured debt. Welloiled if you look at the list of charges - prohibitions and seizures you do see Green appear mid 2020 as a Prohibition. However, the reply by FRR I think raises serious questions about whether any royalty or consideration has been paid. My comment on FTI and Zaza being potentially linked remains - it can't be ruled out until we know more. He was left in place, but what was the Green secured debt and why FTI visited the judge in Cayman to sanction an action they planed to take - that action remains unknown to us. That being so as of today I'm assuming the only asset has been moved and we currently own shares in a company with >$50m of debt and no real assets. On balance FTI seem not to be linked in here - but I suspect the New York discovery they were doing is key here.

If that is the case one can expect a response by FRR and FTI (Outrider). That might be the acid test and the moment of truth here as of today it appears its FRR with Steve (by default the mainly PI investors (there are no large corporates in my opinion), YA, Outrider and FTI vs Georgian interests made up of Green (with Zaza) and GOGC. Effectively East vs west interests. There are other debtors owned money and they could include larger corporates.

This is an unmitigated mess - the like of which I have never seen before. The next move is going to be interesting. US Court case docet update next?