RE: Away from the trials.....9 Jun 2021 21:32
I think you are right on the cultural point about cousins and uncles Njames - it's common in my culture too. The relationship hasn't been nailed but there are enough fishy bits about the transaction that cause alarm bells - the apparent absence of board approval, the security charge, the poor drafting of the contract, the friendship between Zaza and and Otar together with the lack of expertise, the manner in which it was the transfer was rushed through the courts, the waiving of the appeal. It builds a picture when put together with the blatant breacth of the restrictive covenant. The breach of the restrictive covenant is a slam dunk in my view. Zaza admitted it (twice). It's the assignment that we have to worry about.
The Cayman proceedings and the liquidation won't be reversed by this judgment and yes the GG will not be obliged to complete the assignment (although query if approval is needed if finances and technicals are satisfied) but if the court says that the PSA permitted the assignment then that is a positive judgment in our favour. It had always puzzled me why we are seeking a judgment in the USA against a Georgian entity with an asset based in Georgia. The answer to that was provided by the judge on the TRO when counsel convinced him that a TRO still had an impact In a foreign jurisdiction. There is also the probability that if zaza is selling oil and gas to any companies with a presence in the US (or a country which would enforce a US interim judgement) the injunction would bite on those companies and so that would hurt him financially. Although Zaza submitted to the US jurisdiction through arguably a mistake he is astute enough to know whether it is in his interests to stay and defend it and clearly it is in this case and you don't hire Orrick if the case doesn't have serious implications for you.
Whatever the outcome here a positive result would be a boost but the kingmakers remain the GG. FTI know it as shown in there order and so do Green and Uniserve. The irony is that the intra company assignement provisions in the PSA put FRC at an advantage although it doesn't feel like that.
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