A` further informative article from Liverpool Daily Post following RNS see url: http://www.liverpooldailypost.co.uk/ldpbusiness/business-local/2012/08/14/essar-energy-delivers-solid-performance-99623-31619205/ The more public comments on statement the the better we can make rational decisions.
Good Article following this mornings RNS at url: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20294409 Appears gto be a mixed reaction - I will continue to hold until tax position is resolved which should surely impact shareprice one way or other.
Mike 29 I note that Jalaram didn't reply to your post directed at him. Here is an article that I think will help you understand the logic behind the decision better - ie Greater Flexibility: http://www.firstpost.com/business/essar-oil-to-exit-cdr-loan-facility-hopes-for-financial-flexibility-413259.html
Did this article prompt the fall to 108 first thing this morning? http://www.livemint.com/2012/08/09233157/Essar-firm-gets-notice-in-US-p.html I am pleased that it recovered strongly afterwards
Further news to the informative article posted by Matrimark on Tues 20.28: The Court date has been fixed for Aug 14th see url http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/bombay-high-court-to-hear-essar-ongc-case-on-august-14/articleshow/15319068.cms .
Today's RNS reads: July 31, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that its subsidiary Essar Oil Ltd has made an initial payment of Rs.10 billion (c.US$182 million) to the Gujarat Government in respect of the deferred sales tax liability from its Vadinar oil refinery of Rs.61.69 billion (c.US$1.12 billion). Essar Oil continues to pursue the matter of a schedule for repayment of the overall sales tax liability both by legal means and with the Government of Gujarat. Essar Oil announced on July 23 that it has secured a new credit facility with its Indian banks of up to Rs.50 billion (c.US$900 million) to meet the deferred sales tax liability as required. From that, I would think that we will get no news today and the RNS was issued for that specific purpose.
Mike see Essar Energy plc RNS Number : 8438H dated 17 July 2012. These are substantial liabilities; if ESSR are allowed time to pay them in instalments to the Government of Gujarat and the interest waived instead of them being payable immediately as the Government have demanded makes a huge difference. As per the share price impact, that is in the lap of the Gods - I have decided to HOLD and am keeping my fingers croosed.
Important day at Supreme Court is just 24hours away on (July 31 2012) .when Essar Oil seeks guidance from the Supreme Court on a repayment schedule and the waiver of interest in relation to the deferred sales tax liability of Rs.61.69 billion (c.US$1.12 billion). Shares should move one way or other pending the outcome, today is decision time by investors anticipating the outcome
markets are all down FT down 84.76 FTSE down 184.5 at 10am today. I just bought a further 6 thousand at 110.20 must be somewhere near the bottom but would not be surprised i n this market if it falls further for I rarely hit the bottom price
Essar significantly increases oil imports from Iran See url: http://en.trend.az/regions/iran/2048746.html#popupInfo
; This article in today's Global Tax News mentions essar see url: http://www.tax-news.com/news/Essar_Oil_To_Challenge_Interest_Claim_On_Gujarat_Sales_Tax____56445.html BTW Jalaram191 has enhanced my research on Essar and should be encouraged albeit I am sad that he still feels so bitter about his unfortunate unexpected experience.
Today, Essar Oil Challenged the $454 Million Interest Claim in an Indian Court, here is an Information article on the subject at url: http://www.businessweek.com/news/2012-07-17/essar-oil-challenges-454-million-interest-claim-in-indian-court Of significance is that the court will reverse the sealing of Essar Oil’s bank accounts after the company makes an initial 10 billion rupee payment. The order was given by a two-judge panel headed by Justice A.K. Patnaik.
This article supports my observations that our shares are unlikely to get de-listed. Essar Oil are looking forward positively to a brighter future http://economictimes.indiatimes.com/cmpnewsdisp.cms?companyid=9179&newsid=649295
After doing more research tonight I can now appreciate Jalaram's feeling so aggrieved and concerned after reading url http://www.suchetadalal.com/?id=175202d7-a5ce-be2f-492fe1477460&base=sub_sections_content&f&t=Essar%27s+Delisted+Saga but I reiterate this does not mean that this will happen to our shares.
Nubie appears to be asking Jaralam for info to back up his statements about Essar Steel;s delisting to which he failed to provide the details - here is the relevant url dated 8th October 2007 http://www.bullishindian.com/essar-steel-delisting-offer-price-fixed/643/ I am hopeful that such a scenario will not happen to our shares.
A further informative article can be read at url http://www.dnaindia.com/india/report_gujarat-government-attaches-essar-oils-bank-acount_1713109
Informative article at url http://ibnlive.in.com/news/three-bank-accounts-of-essar-oil-frozen/270307-7.html Of concern to shareholders like me is that the statement says that it is not possible to make the payment in one single installment, the specific quote reads: The reason Essar Oil has requested an installment based payment scheme is because the company embarked on a major capital expansion scheme since the sales tax scheme mandated 50 per cent of the collected amount to be re-invested. Hence, it is not possible to make the payment in one single installment as demanded by the state,"
That article is very bad news - the RNS on the matter simply said: the High Court of Gujarat hearing in relation to Essar Oil's writ petition seeking direction on repayment of sales tax has taken place today and the petition has not been favourably considered by the court. Essar Oil has yet to receive a copy of the order, but once this has been received, Essar Oil plans to take appropriate legal action, including appealing the decision to the Supreme Court of India. I wonder if today's RNS of sale purchases is to inspire more confidence? I will sit it out and keep my fingers croosed!
EMGOMG, The tax payment is a serious problem. Even the PRELIMINARY RESULTS FOR THE 15 MONTHS ENDED 31 MARCH 2012 contains the following caveat which I quote verbatim: “The Group plans to fund any repayment of the sales tax liability through a combination of internal funding and through obtaining a new loan facility. The Group is currently in advanced stages of establishing credit facilities of c.US$1 billion with its lenders to ensure that the Group has adequate funds available to meet any liabilities due to the State of Gujarat as and when the decision of the Government of Gujarat/the High Court is established. Although the facility is expected to be committed shortly, the process is ongoing. For this reason the Directors are required to conclude that these circumstances represents a material uncertainty that may cast significant doubt upon the Group's and Company's ability to continue as a going concern”. Having read that last night, I decided to sell more of my shares, retaining just a quarter of my original holding as a speculative investment, if resolved favourably I agree this share should rise considerably, my concern is that repaying circa US$1 billion loan if needed, should be a major consideration for all of us.
Here is the url so that you can clearly understand the definition in greater detail: http://en.wikipedia.org/wiki/PE_ratio