Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
You could be onto it there Ziggy. The liquidators want to liquidate the company but in doing so would lose the license. So Zaza and co are needed to avoid this from happening. That puts Zaza in a good bargaining position in terms of offering a debt for equity swap as the price of the deal. Otherwise Hope is stuck and all know it, he'll get next to nothing otherwise. Hence his desperate attempt to cut out FRR instead and go straight to the GG with his 'offer'. May be little more than that to it at this stage, YA probably in much the same situation and been offered the same. I don't reckon this is part of a SM getting involved at this stage but who knows. Whether the GG or another investor are getting onboard (more) is not quite clear, it may just be sorting out current predicament. Though it looks like something is definitely going ahead. So is it Zaza saying get onboard or else the companies get liquidated anyway and so no one wins forcing Hope into the deal or is there another investor or GG onboard?
Only other thought is if Zaza is buying SN out hence why parent company will be in Georgia but reckon that might be a bit of a reach.
Possibly could be talking about the 50 percent stake the GG have in Frontera. If that has gone up a bit in exchange for finance it could be the change. Hence they might have stipulated they wanted the parent company to be in Georgia. Could make sense as otherwise why would another outside investor want the parent company to be in Georgia. Could have be a stipulation for getting a deal done with the GG. I get the impression they are not so much refering to us so much when they reference the term shareholders in this article.
Further considering all this I can see why Zaza is seemingly offering Outrider, YA even a debt for equity swap. I think he may be saying to them, 'Im offering you this, either take it as share or (presumably) we will just pay off what you are owed/go the distance with litigation even'. My guess is that FRR have a new source of finance from somewhere as otherwise they wouldn't be bothering with this as it would just redeliver the same situation they are currently in. I don't think the GG would be interested in being involved as a part of that. So maybe their is a new investor like what was touted before, Green Finance, or maybe the GG is gaining a bit bigger share in exchange for giving FRR money for it. I'm still thinking that our shareholding will just be transferred across. I think Zaza probably sees it as advantageous to do debt for equity with Outrider so as to keep as much money to invest in new wells etc as possible. Percentage wise our shareholding will be less than before but market capitalisation will have increased a lot with more to come as the field develops. My view of Zaza is that he is most interested in getting business done than running dodgies, I don't see that he is about that.
To be honest I'm not actually sure if this is the big SM deal but possibly more of a case of getting the company on a better footing so deals can get done down the line. Can't be sure but the restructuring in Georgia with talk of another seven year license sounds like it's not necessarily the big farm in many of us are looking for. Hence why for us shareholders I'm thinking it may just be another direct transfer of shares over. Probably not enough time before 30th October to suggest a big deal/corporate action notice, vote, etc to be done.
That's a lot of money BG so I don't blame you for not feeling good about how things went. Most of us hoped for a smoother and quicker ride to a good outcome here. I'm hoping that this is it so I think we are best waiting to see what unfolds here.
Occasionally I've too thought a solicitor might be needed to get at what is really going on. I'm hopeful that will now not be necessary. If anything I think hearing something happening is better than hearing nothing and assuming nothing is happening. I am assuming all of this of course that all shareholders of FRR are not done any disservice in this restructuring. My main thought is that it may just be a straight forward transfer over of our shares but will have to see and react from there. Perhaps we will get some more news to follow soon.
I don't think Zaza is going to let the company be struck off and go to the wall, he's re-emergence would suggest that. My impression that the restructuring is already some way along the way, more than just talk, that it's something that is going to happen immently or likely already is. If you consider Zaza stepped down as CEO in late September then we could easily be two or more weeks along the process. That Zaza is being referred to as Director rather than CEO could just be a mistaken term or could mean that someone else is CEO, possibly a big new shareholder and hence change of shareholders term being used. My impression of Zaza has been that he comes across as a decent guy. The random events over the past couple of years have been very disconcerting at times but I'm hoping this will news will end in a good outcome for us all.
Ok guys, just finished reading back, on the surface it looks like great news. We are at least now no longer facing the depressing liquidation by eye not being on the ball. Once again another turn when all looks like it might be lost lol.
It certainly looks like something is being worked on, a restructuring apparently. So I presume we will find out shortly, possibly within days but likely before the 30th October I would have thought as the liquidation of the companies in the Caymens are presumably all part of the process.
So we now know why Zaza stepped down also and he seems to talk about a lot of stuff so the specifics of how this will play out is not all quite clear. It seems like it might be an internal affair by him calling it a restructuring and referencing that it might be Frontera Georgia Corporation that becomes parent company for Frontera Georgia. Perhaps our shareholding will just transfer over?
Not sure how much stock I would put into what B-2-0 says, no offense but last time he came on here we were given word on some agreed new company formation and some reporter both of which never materialised.
Looking at the article about Hope trying to play a slimey one and get in with the GG. I think he screwed up by stating that any new license holder (if not Outrider) pays them back the money Frontera owes them LOL! Apart from them having no legal leg to stand on it will have come across to the GG that Outrider's approach was really just about its own sour grapes. Hope messed it up by going too far at that point I think. Hope promises the GG this and that but really is just interested in getting the field getting someone in to cash in quick paying off his loan loss on Frontera and any Outrider investment on the field and no doubt a fair bit of profit in excess. I'm not so sure it was a result of the present situation just a case of him having nothing to lose by asking. If FRR lose the license odds are the whole thing would have to go to tender anyway. With two weeks to go till the Election I reckon his attempt has fallen flat.
Good to hear his solicitor picked up and (hopefully) passed on. If anything it would be in his interest to stump up the cost as otherwise if Frontera lose the license he gets nothing. At the very least though hopefully he'll pass the message on in time.
Personally I would have left any mention of 'forum' or 'username' off it wanting to be taken seriously, it risks coming across as a nutter and the person losing interest at that point before getting to the importance info. I would have also included 'Frontera' in the heading so as to grab their interest. Good on you for making the effort though anyway Earnsburn. Though not perfect attempt hopefully they may read it all and serve its purpose. I believe Hope is not only after his loan money/shares but is also a shareholder himself? So he should be very interested in such news should it reach him. If you don't hear anything back perhaps someone could post a more formal email to them and try that. Not meaning to knock your effort it's good you tried but just to make sure it's picked up upon.
Curious that it's been outstanding since January. To me that looks like it is more an oversight than a deliberate act. Possibly they have been so busy and tangled up in all of the court, arbitration, the US/GG that it's never had time to be sorted. If they are not paying the people that are supposed to be helping them our with all this stuff then that's going to be counterproductive to efficient running of the company. I kind of get the impression of a place in a bit of a mess with a heap of unopened letters around and nothing much really being done. Cairn going seems to have been the start with stuff just allowing to lapse. Yet apparently they are getting sales in from oil & gas??? So why don't they spend some of that money making the company run effectively. Seems like things have just been left to run crazily out of control here.
Definitely using every avenue to contact the company to get this sorted seems to be imperative here, even if it is via Hope, he has a lot to lose here so doubt he wants to see it go on an administrative oversight.
That's sounding like better news Mole and ODR, so they would just pay a penalty fee and hopefully would not end in liquidation but could be reversed.
Mole, that is useful to know. What do you think is going on here? Could it just be down to accountants not being paid and FRR now having to find someone to do the accounts return? (quickly I would guess).
I can't see that Zaza would fight so hard to get the US to put immense pressure on the GG then just walk away. He wouldn't have done that if there wasn't big value in that oil & gas field. If he hasn't got a tie up with someone in government to get a new license for a new company and Cayman law would haul him up, then what?
End of the day I can't see it that the company has just run dry off money. Zaza & SN would stump up the money and if not they could go to us shareholders like, here is the situation, we need to issue more shares (privately, off the market) for the company to continue. I think they would get at least some finance if it avoided the company going under as theoretically there is big money there.
If FRR lose the license and there is no tie up then theoretically it could go to anyone. Are we sure they are not registering the company elsewhere or its part of a buyout or something?
Good point tsbs & Starage that is starting to make sense now, not so much a case of Outrider going bankrupt at least probably not unless FRR goes south but as you say desperation as he can see what is happening. If it is a corrupt move then Hope's chances aren't likely good. He is essentially claiming that any new company pays him back what he is owed lol, fat chance if that. I wonder how long it will take him to realise that he is being cut out since their is no reason to include him and any recourse he might have left. All I can think off is whether the US might be concerned by this move since they put immense pressure on the GG to back down but now it looks like US investment here may be swindled away.
What's your take on this Starage?
Thanks ramblingsid, or as perversely as it may sound even Hope. He will have a vested interest in see that FRR are not struck off and if he can't contact Zaza & SN then his lawyers probably can even it is just to their lawyers and get the message through.
My guess at the moment is if they are being crooked they are getting greedy and wanting a big slice of the billions in the oil & gas field and so the money they have invested in FRR is small fry even if it is a couple of million or so.
If this is what they are up to we've got about two weeks. Maybe we should get some legal advice in that time, see where we are at and whether we can do anything about it if that is what is going on? At the moment the license is still with Frontera.
tsbs, do you think that is even possible? If the license goes back to the GG and then Zaza has a tie up to get them to grant a new license to them? I assume SN would have to be in on it too and Zaza leaving would be part of the ploy. The current GG don't seem in favour of Zaza & co given all that went on. Possibly they are waiting for the new administration and has buddies in there to grant him it? Possibly with them getting a look in? or is that all a bit far fetched? Would such not be an illegal action with recourse for us shareholders to take action?
I can't see that it can be legal to move the asset to a different entity and it be legal if it deprives existing shareholders. Are we sure this is not a tactic to demonstrate to Hope that if FRR goes down we all lose to get him to the bargaining table? We have about two weeks until we are struck off. Has anyone tried contacting Zaza through his social media pages on this to see if he is aware? I don't see why they would make all the bother of fighting the GG to keep block 12 only to lose it here.
OneDayRodney, how come it means our investment is gone? Surely it is not the same as if we are bankrupt. FRR has various entities registered in different countries. Do you think the company are not aware or they see no point in doing it for some reason?