GOGC annual accounts published19 Sep 2022 00:04
The GOGC annual accounts for the year ended 31 December 2021 have finally been published on the GOGC website. These are relevant to our investment as they include an update on the recoverability of the monies that the GOGC claimed are owed to it by Frontera. My interpretation of this year's update isn't especially enlightening alas.
The relevant section is note 25b on pages 34/35. A quick scan reveals that the wording is precisely the same as in the 2020 accounts with the addition of two paragraphs as follows:
"On 13 January 2021 an order was made by the Grand Court of Cayman Island pursuant to which the
liquidation of Frontera has been brought under supervision of the Grand Cayman Court and the JVLs
were appointed as joint official liquidators of Frontera (JOL).
On 10 February 2021 JOL made a declaration of Frontera’s insolvency."
The rest of the wording in the note still states that the GOGC expects to recover the amount they claim is owing to them of 18,522,000 GEL (equivalent to c£5.74m) from Frontera. But then the addition of the paragraphs above are statements of facts which cloud the reader's interpretation of the matter.
These accounts are statutory and are audited by KPMG and, as such, this note has been independently verified and applies as at the date they were signed, which was 7 September 2022. As an accountant, my professional view of this is that the auditors are as confused as we are as to what the reality of the legal position is and so they have covered their backsides by on one hand saying the monies are recoverable (good news for us!), but on the other saying that the company has been liquidated (curtains for us!). Overall I think KPMG, as auditors, have bottled the issue.
It would be interesting to read other folks take on this please.
Sign In
Follow the stocks
