Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So yet again after one piece of news we await another to make sense of it. I suspect that the court order will be drawn up today and will be posted in the early hours of tomorrow UK time but possibly earlier. I will post it here when available. Hopefully there will be some crumbs of comfort in the order and more information regarding the monetary sanctions -again this could be read both ways. The judge wants FRR to file on sanctions by the 14th.....is this on why there should be monetary sanctions against Hope or why the Judge shouldn’t file sanctions against FRR. The second option does appear slightly more logical based on the denial of the injunction but here’s hoping for the best.
Secondly Grand court cause list for next week in Caymans is to be listed tonight.....again will the insolvency hearing be listed?
On the face of it not good news but it mentions that the court will issue an order which may be uploaded later tonight/this morning which will give us more information. The fact that the case is still open and that there is another submission to be made by next week for ‘monetary sanctions’ means there is more to this surely.
My concern previously stated on this board was whether a Californian judge would rule on an injunction case when an insolvency hearing is about to be listed (so we are told) in the Grand court Caymans Islands. He wouldn’t want to step on the toes of the court there. Anyway we will hopefully find out soon.
Chins up all we still don’t know what’s going on
Full docket text for document 40:
Minute Entry for proceedings held before Judge Richard Seeborg: Motion Hearing held on 6/6/2019 re [36] MOTION for Preliminary Injunction and Supplemental Memorandum of Points and Authorities filed by Frontera International Corporation, Frontera Resources Corporation. Plaintiff may file a brief regarding monetary sanctions by 6/14/19. Preliminary Injunction Denied. Court to issue an order.
Total Time in Court: 1 hour. Court Reporter: Jo Ann Bryce.
Plaintiff Attorney: William DeClercq.
Defendant Attorney: Gregg Ficks, John Cornwell, Ross Parker.
(This is a text-only entry generated by the court. There is no document associated with this entry.) (cl, COURT STAFF) (Date Filed: 6/6/2019) Modified on 6/6/2019 (cl, COURT STAFF).
As in 3-4am on Friday morning over here
As already pointed out the Preliminary Injunction Hearing is listed for Thursday afternoon. The final case of the day for Judge Seeborg.....Starting time depends how quickly the Judge deals with the 2 cases listed before us. I’m almost certain this is a full hearing...not being done by telephone as it would be listed as a teleconference if so. I think it’s too important now for both sides to deal with in that fashion. Again I’m pretty certain there will be an order made and listed that day. Normally see court documents posted early evening Californian time....so 3-4am BST. FinallyI think this is a huge decision day and hopefully a turning point for the company. Good luck all.
Next court document
Well I’m hoping that I won’t be needed when the court document is released....it will simply say ‘motion tor injunction granted’. !!
Cheers
Taffy
Agree with Symore....our legal argument is not petering away it’s becoming sharper and more defined. We are finishing strongly!
As a director I meant
I completely agree.....there is not a shadow of doubt in my mind that Hope was not acting in the interests of FRR as a shareholder.
It has also been intimated by some before that Hope could somehow be in cahoots with the GGC.Im not alleging that but he is interfering with that process. Steve N states ‘that the JVL’s presumably on Stephen Hope’s instruction have already interfered with FRGC ongoing arbitration with the Georgian government.’ Why would Hope do that? Surely it’s not in his interests for the arbitration process to go badly for FRR unless there is something else going on?
Or we argue before a judge in the Caymans that the insolvency process should never have taken place......again before Thursday. I’m no expect though and guessing like everyone else. We are still fighting though and as Goit says our strongest submission so far
I agree Arsenal that there is good reason why the injunction should be awarded....my concern is - do you think a Californian judge is going to grant an injunction and interfere with a legitimate insolvency process in the Caymans....Yes FRR are saying that Hope is pulling all the strings in that regard but I can’t see the Judge agreeing with that. He would be interfering with Caymans due process....surely that would be for a Caymans judge to decide.
I still think the most important thing is that the insolvency issue is dealt with in the Caymans Before next Thursday...We declare solvency and contest this before a judge who hopefully agrees.....this frees up the Californian judge and I think he could make an injunction ruling then
The court case will go ahead next Thursday.....unless there is a settlement of course which I doubt. Will be interesting to see when the insolvency hearing is listed. I’m surprised not so far as Hopes lawyers said anytime from the 29th.
I’m unable to copy the supporting docs unfortunately. When asked how they were going to fund the £150k Durham fee Zazaz replied that they would find the money....either by oil sales, loan or equity. No information to say how they did did find it.
Hope mentions forward oil sales so it’s clear we were broke in November but not necessarily now.
This is a proper war going on and it’s all got to come to a head next week. Doesn’t look like there was much of an oil revenue coming in as of November but I have I have skimmed through so far.....I wouldn’t come to any conclusions yet.
I agree our latest court submission looks strong....just need Judge to agree
I will try and copy further exchanges via telephone conference later regarding Durham loan in November 18. Very heated between Hope and Zaza. Hope kept repeating the question do Durham know that FRR are in default on loan notes......and how can FRR pay $150k fee to Durham when that’s 4 x what’s in the bank account and they can’t pay service providers.
Zaza disputed that they were in default. Lots of inaudible comments in the minutes which I think are Hope swearing
So the court docs first bit of news that we were expecting. We won’t know how this will play out until next week but FRR are fighting hard....Hopes lawyers not conceding anything.....maybe think he’s in the stronger position.
Will Tsbs get a response to his email and will a insolvency hearing be listed in the grand court next week? Should know that when they publish cause list tonight
Eric, Thank you for your email. First, the Defendants absolutely “believe what they submied to the Court.” Further, the Defendants do not agree with Frontera’s premise that that the proper approach is to consent to an injuncon simply because Frontera seeks “irrelevant” relief. The proper course of acon would have been—and remains—Frontera’s withdrawing its request for injuncve relief. Outrider Master Fund, L.P. intends to take all appropriate acons to protect its interests, as is permied under the operave loan documents and under prevailing law. To the best of our ability, we have described in significant detail to the Court (and to Frontera) the JVL process that is underway in the Cayman Islands. However, neither OMF nor any affiliate-Defendant intends to consent to injuncve relief that is legally without merit. Certainly, the Defendants prefer to avoid the expense of an unnecessary injuncon hearing; however, the Defendants cannot consent to the proposed order that you outline below. Ross.
the Mortgaged Property or any part ; h) deliver, assign and/or transfer the Mortgaged Property; i) exercise and do (or permit the Mortgagor or any nominee of the Mortgagor to exercise and do) all such rights and things as the Collateral Agent would be capable of exercising or doing if it were the absolute beneficial owner of the Mortgaged Property; and/or j) do anything else to change the status quo regarding the Mortgaged Property as of the date of this Order; and/or k) take any steps to appoint and/or direct appointment of a Receiver pursuant to Section 9 of the Equitable Mortgage. Thank you, Eric Fisher
would be of no effect because the Defendants (even at the bounds of their indirect influence over OMF) have no present control over the liquidation of FRCC. Preserving the current “status quo,” therefore, will not prevent any “irreparable harm” (to the extent that any actually exists) which Plaintiffs seek to avoid. (Opposition at 12). If, in fact, Defendants believe what they submitted to the Court, including that they “have no present control over the liquidation of FRCC,” why not simply stipulate that Defendants will not take the actions that Plaintiffs fear? In other words, if the parties are fighting over something that is irrelevant, Defendants should save the Court’s and the parties’ time and resources and stipulate to a corresponding Consent Order. Below are the material terms that appear to be consistent with Defendants’ submission. Please let us know Defendants’ position on this by the close of business on Tuesday. (To be clear, this email is not a confidential settlement communication). Proposed Material Terms of a Consent Order: During the pendency of this action, or pending further order of the Court, Defendants Stephen Hope, Outrider Management, LLC, and Outrider Onshore, LP (collectively, “Defendants”) are temporarily enjoined, and restrained from making any payment and/or providing any funds to MaplesFS Limited, FTI Consulting, and/or any other joint voluntary liquidator, and/or instructing any of these parties, directly or indirectly, in any manner whatsoever, including but not limited instructing them to: a) exercise voting and other consensual rights attaching to the Mortgaged Property (all capitalized terms shall have the meanings ascribed to them in the Motion for Preliminary Injunction) or any part thereof; b) exercise any other rights and/or powers and/or discretions of the Mortgagor in, to and under the Mortgaged Property; and/or c) receive and/or retain any dividends, interest, distributions or other moneys or assets accruing on or in respect of the Mortgaged Property or any part thereof ; d) demand any dividends, interest, distributions or other moneys or assets received by the Mortgagor be held in trust by the Mortgagor for the Collateral Agent and/or paid or transferred to the Collateral Agent; e) f) g) 2 of 5 present to the Company or any other applicable person any undated documents provided to it pursuant to any provision of the Equitable Mortgage; take any steps to register the Mortgaged Shares in the name of the Collateral Agent or its nominee or nominees to assume control as registered owner of the Mortgaged Shares; take possession of, assign, exch