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Looks like the thieving vultures were just waiting on sidelines to snap up afren's prime assets; they must already know true value.
There are some specific requirements to demonstrate client confidentiality is maintained in a "Chinese wall" scenario. Worth reading the following. http://uk.practicallaw.com/3-100-8763
Agree the administrators are just following the law in terms redistributing value. However, what has brought to this predicament is another story entirely. Withholding BH payments to default Selling POO hedge without informing investors Writing off asset values Withholding information about severe production issues If fraud can be proven immediately then it could put a massive roadblock in the administration process. If it is proven retrospectively post administration there could still be scope to recover damages from main perpetrators.
Yellowcraig - I hope there is something similar possible here. These criminals should not get away with scott free for underhand dealing going on here.
Blackstone have always hovering around in background. Now these vultures (inc JP Morgan) will no doubt pick up prized assets at a massive discount.
In the space of a few weeks we have been well and truly stitched up. I know the decline was severe but always reckoned there was some way back to some kind of value just based on production and asset base. Clearly a lot of the real information was hidden from investors so we could not make a clear and informed investment decision. I am sure if any knew the true state of affairs they would not have invested here. For a FTSE 250 company this is just scandalous and I hope ALAG can get retribution for those that have been complicit in this deceit.
So from what I seen on this forum during suspension period we are unlikely to hear much in terms of news etc. Is there any update that have to made public? ( eg. Q2 production and operations news) OR is there a news black out until next steps of administration process are announced?
Q - What is the purpose of the administration? From pwc website: A - An Administrator must perform his functions with the objective of - 1. Rescuing the company as a going concern, or failing that; 2. Achieving a better result for the company’s creditors as a whole than would be likely if the company were wound up (liquidated) (without first being in administration), or failing that; 3. Realising property in order to make a distribution to one or more secured or preferential creditors. The Administrator must perform these functions in the interest of the company’s creditors as a whole. I just hope Alix are not paid the crazy sums given to Alvarez for the worthless restructuring plan. That would be final nail in the coffin for SH getting anything back.
Fingers crossed. Not sure how long the admin process will take BUT if there is a decent POO recovery in short term, short term production issues not as severe as expected and some of the assets are worth more than currently portrayed there is always a small chance that AFR can be taken out of administration and we get something back. If however the prime assets are hived off to a subsidiary and we are left with bulk of debt + crap assets in Afren plc then we have been ripped off and I hope the legal action make those responsible for this fiasco pay for what has happened.
1) Following the administration process we (PI SH) can get something back - even the pre-suspension closing price of 1.78p. Not ideal I know but better to get something back. 2) There is proper justice for those responsible for the scandal that has passed here. If there was a £200-250m shortfall this should have been communicated earlier so holders can decide what to do. Instead the shares are suspended and then they announce this whopper when our hands are tied!!
Never expected this to happen but by the looks of it Afren plc (i.e. SH interest) will lose everything. Any good assets will be hived off already into subsidiaries where we have no claims. So a privately owned Afren MkII will probably carry on operating Some serious wrongdoings have gone on here and we are the victims. Also looks like some BH have also been scalped. So seems best chance of salvaging any value now for SH is going down the legal route.
Key achievement I would say is to unite the NO PI SH voters on this and other forums. There was a time when the restructuring prospectus was first released many were looking at buying into OO to reduce average etc. But I am sure many on here have been swayed to NO vote and hold out for a better deal based on discussion initiated by ASOG on this forum. Some will argue that NO vote would win anyway but with ASOG 10% of share holders we do still hold some influence. BUT nevertheless now we are in this suspension period I do want ASOG to be more proactive given the influence they have and engage with Alan / AFR BOD. We all deserve to know what the hell is going on. These reports in Sunday Times are they true? Why no official RNS? If however, Alan refuses to meet with ASOG then I take that as a clear message he has no interest in PI SH.
Not sure whether he is duty bound to act in BH interest - he should be accountable to SH after all ; but certainly his actions come across as he is representing BH. Also I will have more faith in AL when he takes proactives steps. (i) He did not replace BOD they walked (to save embarressment) on back of AGM vote; (ii) He did not expect a strong NO vote and the suspension / delayed EGM is primarily a response due to that. I am sure if a YES vote was on the cards the re-structure would have proceeded, with BH providing extra funds as in the scheme of things a further £30m is small change compared to the £1B assets they would effectively control.
I hope so Pete. We have suffered long enough already!
* does not seem to know what to do next.
Pete. Having been involved for months already. Alan knew exactly what he was getting into when taking the reins. I believe this was to push through a yes vote ( and if this happened I am sure he would have been rewarded handsomely). But if you read what I said given current circumstances (eg. strength of no vote) he has failed and now seems what to do next. If he had SH interests at heart I woul expect him to re-engage with ASOG to at least explain what has happened. We are now caught in a news vacuum and TBH silence on his part does not fill me with any confidence. I appreciate you have met him and all that but his non action to date is telling.
I agree I cannot see what Alan has done to date to justify his salary. No proper news / updates to investors. Negative RNSs that have helped to destroy the SP. Even now we are supposedly reading about Afren's production issues from a third party. Alan should be telling us what is going on. This guy is a stooge whose primary aim was to push through a YES vote and get a substantial bonus no doubt for this. On this account he has failed and is now floundering with out any real idea what should be the next move.
That' s good news in some respects so just typical issues any oily faces. But why can't this useless BOD give is proper updates instead of reading stories from the grape vine; which numpties then take as gospel to spread fear that this is it AFR going down the pan, write off your investment etc.. What the hell is Alan getting paid £0.5m for ?? Seems to be doing f all so far.
It now looks like BH and SH have been led up the garden path... From Sunday Times: "It is understood that the drop in output is due to the delayed installation of a new platform at its Ebok reservoir off the coast of Nigeria, which accounts for two-thirds of Afren's production. The bondholder group that led the April refinancing was this weekend considering whether to put in more cash to meet Afren's need for "further significant funding". I would find it incredible if BOD were not aware of operational issues being encountered. At least we know (a) major operational issues (need to understand extent of delay and impact of Ebok issues) BUT STILL NO OFFICIAL AFR RNS !! (b) Recent POO falls will again hurt revenues. Question now is - is there a way out of this mess?