Member Info for MontiBurns

Very grateful for your steadfastness of keeping us mortal shareholders updated Looed, so thank you from all long term shareholders.

My own observations on this case:

1. $1.25M settlement agreed with SN only

2. Joint & Several liability removed from SN’s shoulders; Mourant free to chase after ZM (should keep him barred from free international movement)

3. Repayments agreed are over a short period to Feb 2024 (6months). However majority, c$950k, will be due in Feb.

Conclusion: $1.25M is no small change (given FRC’s financial predicament) and as SN has agreed to repay this, it does signal that perhaps FRR may yet rise from the ashes. The alternative reason could be that Nicandros is an important name in the US O&G and may be he is just trying to protect his family name (or he couldn’t legally wiggle out of his PG)

This combined with the perseverance of YA to recover their money, it does show that these companies know something we don’t. That ‘thing’ could be the significant personal wealth of SN or that FRR may be back soon.

Next important date is 3rd October on the YA case but the key case is the FIC v Joint Receivers v SN et al. Recall CLN were issued by FIC.

Nevertheless, these periodic updates do provide us (the shareholders) with renewed optimism and give us something to cling on to. However still feels like we are just about keeping our heads above the water, albeit that this water may appear to be subsiding.

Did we get any more insight in to the global legal settlement that was signed between Frontera et al and Hope et al? Why? Well, it would be nice to know how FRC were going to repay the OMF debt because that would be underlying premises for the two opposing parties to agree.

When I compare the money owed on the CLNs against the YA case, I see the YA case as a relatively side issue.

At LSC, at the same time, when I start thinking about it, if the Hope and FRC legal dispute was settled via this global agreement, then the big remaining case (FIC, NYC Joint Receivership) would have closed by now.

Thanks in advance to any one providing some clarity.

A really sincere, heart-touching post from Coggy. Perhaps someone can share this post with Nicandros/company so he/they can feel some of the anguish their long suffering shareholders are continuing to feel. Of course, Coggy is not the only individual who is a long standing investor, probably over-invested and had faith in the Directors comments and official news releases.

Having said all this, what is the difference between us (shareholders) and Mr Nicandros, who has invested his life, money and family reputation in to FRR? The answer is pretty simple: Nicardros knows exactly where he stands with his investment (as he is involved in the legal cases and is probably funding the legal costs) while we mortal, hopeless, bystanders speculate on the continued recovery of this train-wreck of an investment. We can only appeal to their good nature that they can somehow convey some kind of an update/signal to their shareholders of where we are. So, what could they do without comprising on the ongoing legal cases, including ZM who is also probably waiting to crawl out from under his rock at an opportune time? Not sure, but some kind of a general refresh of the corporate website could be seen as a positive sign.

Thanks to all who are genuinely trying to help and thereby keep each others mental state ‘above the rising water’.

Looed, your depth of ongoing legal matters concerning FRR is astonishing and (for us mortal shareholders) gratifying. Can I assume that some of your messages posted here are being reviewed/cleared by someone at FRR to ensure the accuracy, particularly noting some of the granular details in your posts? Nevertheless, while we are stuck in what seems like a perpetual vacuum on official news from the company, your posts are helping many desperate shareholders of ‘keeping the flame alive’ (including myself). Five years on, I am sure we may have sadly lost many to the grim reaper (just a sad fact of life).

With regard to FICvsSN, one thing that gave me enormous comfort was the signing of the global legal agreement with Hope, which saw the California case fall away. We had all thought at that time (following the execution of this agreement) other major cases between OMF-Hope and SN-FRC would have settled but atlas, we are none-the-wiser. Recall at that time, we speculated that perhaps Hope was given some Royalty payment scheme whereby he would recoup his debt from future oil sales. But I don’t think this proceeded as we thought, because otherwise Hope would have instructed the Liquidators to cease all proceedings.

Anyway, perhaps the closure of the YA case may finally allow the Company to say something to their saintly shareholders, in terms of future plans But until then, we have to be grateful for your posts.

Thanks

You could argue that the YA case to be relatively small given the claimed amount is c$2.3m, which leaves the FIC vs SN, being the most significant case. On one hand, it is a shame that YA have not tried to settle this but I guess as the amount is small and the YA business model is such that they cannot be seen in the public domain to be soft on defaulters as this could be bad for business (being a corporate loan shark).

On FIC vs SN: this case is being fought by the liquidator on behalf of FIC creditors, mainly being the Administrator himself and OMF/SH. Therefore I am not entirely sure how much input/directions Hope can give as this is following a prescribed regulatory process (unless SH stops funding). However I must admit that my memory is fading a little now and this case perhaps relates to the breach in Fiduciary duty by the Company Directors; the PGs being claimed through the Texas County Court and my not be included here but I don’t know current status.

While the company remains ex.communicado to shareholders, it is worth reminding Mr Nicandros that the last official news from the company was in January 2019, although I will acknowledge that a lot of the legal issues have been resolved satisfactorily, including obtaining a permanent injunction against ZM.

From a bigger picture perspective, we still have an expired PSA in Georgia, legal costs owed to GG from losing the Arbitration (although hopefully this is getting paid down from FRR’s share of oil production) and unfriendly political party.

Still lots of hoops to jump through but, step-by-step.

Just some Sunday morning thoughts, concluding with respects and regards to the usual suspects for keeping this bulletin board alive.

This is the case where Frontera International Corporation is the Plaintiff and SN is the defendant. FIC was the entity that was used to issue the Corporate Loan Notes (CLNs) and also held the PSAs for Georgia and Moldova, which we are lead to believe were transferred to FRUS (although no official confirmation from the company). As FIC was put in to liquidation, one can assume this case is being fought by the official Receiver on behalf of its creditors namely OMF/Hope but also including themselves, as Receivers have first claim on any monies recovered.

I recall, originally the CLNs were only secured by the PSAs but in the last restructuring of the CLNs (rollover of the interest, March 2018?), SN and ZM were required to pledge their Personal G’tees plus 200 million FRR ordinary shares each to do this. I assume (as I have lost track of legal cases), that this case is to recover monies under their PGs? If that is the case, then the ‘global’ settlement agreement signed with Hope is not all encompassing, unless of course the Receiver is going through the regulatory/legal motions as this is a separate independent process. Also remember that we did speculate a little while back that the basis for the global agreement was perhaps a financial settlement had been reached between SN & Hope but this action signals otherwise. Whatever the case, kicking this can down the road to Oct 2024 is not great and the basis given for seeking this extension is to continue with the ‘Discovery process’.

Regardless, it does seems that this is the major case waiting to be closed noting the YJ and YA cases are relatively modest in terms of financial size (also assuming the Mourrant case is in the process of being dismissed).

I do hope we get some official communication from the company soon regarding next steps and timings as sitting on our hands for another 16 months would be sad

Good to know that the Texas case has also been legally concluded in a similar fashion to the Cali case ie all claims and future claims between SN+ZM and OMF+Hope dismissed plus Attorney fees to be assumed by each party. If there was one case where I felt Hope had a strong chance of success, it was the Texas case due to personal g’tees issued by the two FRR Executive Directors . I also recall back in 2018 when the CLNs interest was due, Hope only agreed to roll these up providing he received personal guarantees supported by Zaza’s and SN’s ordinary shares in FRR (amounting to 250 Million each if memory serves me right). So, with this case closed, there is a strong indication that Hope/OMF debt has been repaid (partially/all?). But by how much? If I was to hazard a guess, I would say between US$5-8million. Anyway all conjecture but the reality is getting OMF off our backs is a big deal. As far as the other coporates cases are concerned (ie FIC and FRCC), I assume these will follow their due process on liquidation and recovery. But hopefully, steam would have run out given the bigger agreement with Hope/OMF - but we shall see.

So that all being said, I think the company is in a position to send us an informal update via our resident contributors of where we are and what is expected next.

Thanks Looed for your thoughts/inputs which can I follow. Overall, this is great news that personal cases involving FRR Director and former Director (ZM) are dropped by Hope/OMF and vice verse. That clears up a lot of time and legal efforts as far as court proceedings are concerned. However, it has to be acknowledged that we still do not know the terms of agreement between the parties to reach this point. So what are we left with? I assume, the Corporate cases involving the liquidation of FIC, which on the face of it appears, will continue to be followed by Hope/OMF. I do recall there was a Corprate G’tee issued by FRCC (?) in favor of FIC’s debt/CLN obligations, so there could still be some action there. But here we could really do with some clarification from the company, that corporate cases will also fall away (over to Jim Looed).

Again, this is a massive milestone (after 4.5 yrs) and for a company with seemingly no future, why would SN persevere with FRR if no prospects of a return? In the meantime, any sale of oil from Georgia is being used to repay the costs rising from the Arbitration.

So, Fiduciary case now officially closed following Judge Seeborg’s sign-off (thanks for sharing Looed). In terms of the ‘knock on’ affect on the other cases, well, we will have to wait and see. But I do hope either JimSlade or Looed can get a little bit more info now from their contact to add to this important legal case. And I do hope that the company obliges at this time because for me, it is an ‘exhalation of relief’ moment.. Those who seem to be downplaying this milestone, clearly don’t understand the wider legal web of cases and their implications on the company and their ultimate goal to recover - but I guess one step at a time. So, for me, the really important two questions are (in terms of understanding significance of this moment), 1) Will Hope be paid for his loan notes (how much and by when?) and 2) Is there a global agreement with Hope regarding the remaining cases?

Thanks in advance.

Whamboy - I think there is a far more rudimentary reason for filing the motion at the last minute as this was the stipulated cut-off time by the Judge; submission sooner would have made no difference. Further, in the legal circles, it is typical to leave things at the last minute to give as much time (and flexibility) for any unexpected developments. Therefore, I am far less concerned about the timing of the submission motion to dismiss, but more focused on the wider agreement struck with Hope/OMF. From my perspective, it would be ill-advised for FRR to agree to this unless it involved other cases namely the Texas and Liquidation of the Cayman companies/claims. The thing that points to a positive outcome is that both parties have agreed to cover their own legal costs, meaning neither party felt it was in ‘a winning position? Perhaps Hope will get some repayment on his loan notes, giving FRR a clear run to resume operations, with remaining cases falling away. Let’s now wish JimSlade can get some signal(s) in terms of where we are heading after this motion has been officially signed off by Judge Seaborg.

Noted with thanks.

Again, thank you Looed for staying on top of this and informing us in a timely manner. All shareholders remain on tenter hooks until we can clear this major US court case with Hope&OMF. So the Order has been prepared and submitted to Judge Seerborg for sign off, which should (presumably) now be an administrative process. Also, interestingly, it states on this Order that the original start of the Cali Case was on 14th April 2019, meaning it’s nearly 4 years in the making, so only God knows how much legal expense has been racked up by each party during this period. So therefore, good to read that each party will assume it’s own legal costs.

Furthermore, the case is being dismissed as ‘with prejudice’ but what does this mean in legal terms? Well, when a court dismisses an action, they can either do so “with prejudice” or “without prejudice.” Dismissal with prejudice means that the plaintiff cannot refile the same claim again in that court. So here, FRR are forgoing any future Fiduciary action against Hope in Cali (but I’m no legal eagle).

Ultimately, and on the face of it, this has to be a positive development but until we see the finer details, it difficult to conclude with any degree of certainty. But it is unlikely that we will get to know what settlement has been reached as these typically are highly confidential. First signal may be Hope’s intentions in the Texas case where he trying to enforce the personal guarantees against SN and ZM. If this action also falls away, it is safe to assume that a wider agreement has been reached between the two protagonists.

In the meantime, if Mr Looed can reach out to his contact at FRR to get some kind of signal on this development, it will help to put some of our minds to rest.

I thank you again.

I too think SN is a decent, honorable fella but didn’t get the rub of green due to Georgian politics, specifically the Dream party. As long as SN is around FRR, he will do right by us shareholders. Also, worth noting that he has never tried to screw his creditors up. On the original CLNs, he wanted first option to buy these heavily discounted loan notes but Outrider swooped in. I think his intention was always to offer shares in exchange for debt like most junior O&G companies were doing. Since that period, he has kept Hope on Board of FRR and involved. But he encountered two protagonists (in ZM and SH) that were pulling in opposite directions for their own benefit resulting in the predicament we find our selves in.

I don know if JJCarter is SN, but I do hope he is reading this BB because he should realize that most shareholders are behind him and FRR and are awaiting the second coming.

On the settlement with Hope, I thought we would have heard something by now but fingers crossed.

Looed any update? (Thanks in advance).

Must admit I totally forgot about this case as our attention was focused on the other cases namely being the ZM Permanent Injunction, the Cali Case and the Texas case were Hope was enforcing the personal G’tees against SN and ZM.

This case is where Hope initiated his own breach of Fiduciary duties against SN&ZM but in the Texas jurisdiction (abit like a tit-4-tat action). So with that in mind, it would have made sense for the Texan Judge to grant SN’s motion to delay proceedings pending the outcome of Cali case. So, I suspect if there is a successful settlement to the Cali case, this will fall by the way side too.

Just for some background context, I would hasten to put a number on the total legal costs that have been incurred by SN and Hope (and even ZM) since Dec 2018 (let’s not forget the Cayman Island Case). On top of that, and seemingly, the key asset being the Georgian PSA has reduced to 1% of the original size, while that 1% is also ticking down in time, so why this mammoth legal proceedings?

This situation also reminds of the two farmers fighting over a cow, one pulling by the tail the other by the head, while the guy in the middling is sitting on the stool milking the cow, being the lawyer.

Thanks for your thoughts NJames, Looed, Whamboy et al.

So, another new case surfaces and indeed it is a blast from the past with Tim Thomson and his Yellow Jersey firm. However, this does make you wonder the timing of his claim? Why now? Also, while not a significant amount, perhaps these guys have been made of a settlement with Hope and the distinct possibility that FRR may be returning. Or it may be that Tim Thomson needs a top up to in his pension fund. The next thing we might hear is that Malcy is also waiting at the doorsteps of the Texas County Case wanting to register a claim for his travel expenses to Georgia. Anyway, for now, the big news will be on the details of Hope’s settlement.

Also, all this talk about confiscating ZM’s shares to give to Hope in lieu of his debt is a legal minefield to achieve (although sounds just). I think FRR would have to take ZM to court in another Fiduciary case and if they win, may use his shares to offset against any financial penalty the Court may impose. No, I personally think it may be easier for FRR to allocate ZM’s shares to Hope in the new company issue (FRUS?) when the corporate restructuring is complete but that action may invite a legal challenge from ZM.

Anyway all food for thought.

Thanks again Looed for this but when do you think they will submit their request to dismiss the Cali case.

Hi Looed, many thanks for responding to my post and indeed giving us your thoughts (much appreciated). But, how would they know that we are aware of these developments, from reading this BB or via you? Notwithstanding, if they know that we know, then it’s even more annoying because it means that we are left to own devices to uncover these important legal developments, while they must realize that they have an obligation to the shareholders who continue to hold their breathes. I think we could do with exhaling a little with relief due to this important development, so with that in mind, I wonder if you could reach out to the company to give us a little more detail that post filing of this settlement, all legal cases relating to Hope, OMF, SN & ZM are closed.

Thanks in advance.

As usual thanks to those that bring us these timely updates. However, as Earsbern has to aptly captured our sentiments, it is very annoying to not have the details to pour over.

But I am still not clear that when the doc says that a settlement in principal is agreed to resolve all claims; the natural question to ask is that is this settlement covering all FRR vs Hope cases or just the Cali Fiduciary case? Nevertheless, this is major break through which everyone associated with FRR should feel very pleased about. While not lawyer, perhaps there was a time limitation (5-Yrs?) involved which may hastened Hope’s will to settle and get what he could.

So, as this is great news, the company take the opportunity to share some update with us, via formal or informal way (via Looed, JimSlade), in terms of what is going on. This would be very much appreciated by us Shareholders, and Gods know we have been patient, loyal and stedfast.

Over to Mr SN….

First and foremost, our best wishes for ‘toatie’ on his heart procedure; God willing all will be fine.

With regard to topping up the translation pot, I am willing and ready to add what I can. At this juncture, I want to express my gratitude to Looed, Puddy and Erik9 for managing this fund on our behalf. Over the years, this effort has resulted in us shareholders staying on top of many developments.

Also read a lot here on the potential valuation of FRR and frankly speaking it’s a really difficult question to answer. Remember 99% of the block has been returned to GOGC and until this has been re-assigned (I am confident) not sure what the value could be. Historically, I always took the cost recovery pool as the floor valuation because for a potential acquirer of our block, return on investment would have been quick as profit on oil sales for GOGC were only payable once all costs were recovered by FRR. However (frankly speaking), post Arbitration decision, I don’t know what is the legal status on this recovery pool.

On a positive note, all eyes will be eagerly anticipating seeing the settlement agreement with Hope when it is lodged in the Court. A successful (and acceptable T&Cs), could finally lead to‘thawing’ of relations between the Company and its shareholders.

A message for Looed: do you still have an open channel with the company? If so, please convey our thoughts that once the legal wranglings with Hope are concluded, we desire engagement and this can start off with the company launching the corporate website.

Many thanks to Looed for his continued dedication to keeping us updated on legal matters via this Board. If people did not have access to this info via LSE, I think there would be heightened anxiety and despair, so thank you for helping us to keep our sanity (relatively).

As far as this news is concerned, well, it’s a massive boost to know that the two parties have come to an agreement on the Cali case, but the devil will be in the detail so let us wait ‘to exhale’. Let’s hope it’s an all encompassing agreement which covers other cases such as the Texas case where Hope is taking action against SN and ZM regarding calling up on their personal g’tees (I think it will).

So, what could be the reason for the settlement? Escalating legal cost? Time barring, or sheer exhaustion from fighting multiple legal from Hope? Whatever the case, this settlement is a strong signal that there is still huge value in FRR even in its current situation of 1% in Georgia. This brings me to my next point: once Hope is out of the way, Georgian PSA will be renewed on condition that the legal Arbitration costs will be paid to the GG (I recall $6mln?). I also believe FRR may have a large farm-in partner waiting in the wing. So, following the Ukraine invasion, there is going to be a huge effort to find oil and gas away from Russia and this will be a long term energy strategy for EU and the US. If this is the case, then finding a Major investor should be relatively easy as there will be political support.

On Hope, I believe FRR will pay Hope to extinguish the CLNs and I will hazard another guess that this may total around $15-18mln. Does SN have this cash or will be settled in installments? Or will the farm-in partner help?

Still lots of barriers in the way but Hope’s settlement is a major piece of this jigsaw falling in to place.

As usual, thanks to all who are keeping this BB alive.

Since the Dream Georgian Party came to power in Oct 2012, the Georgian people have been taken for a long ‘deceptive’ journey. On the face of it, this pro-Russian party, was publically advocating closer relations with EU and the Western World, while on the other, getting in bed with the Russians (Putin and other Russian men not the ladies). Perhaps this is why Nicandros, ran in to the bosoms of the Atlantic Council and some US Politicians. It could also explain why the EU and would-be Multinational oil companies approached Georgia at ‘arms length’.

Unfortunately, only the naive FRR shareholders were led to believe that political risk in Georgia was low due to country and people were lauded as ‘one of the easiest places to do business’ (evidently not!).

Anyway, who would have thought that the greatest evil FRR was facing was coming from inside it through its CEO (ZM) and it Board Director (Hope).