Member Info for WHamBoy

Here's an additional thought. When we delisted, from memory there were about 9 billion shares, at 0.3 pence each. I reckon that's about 27 million pounds in value for FRR. If I'm right in saying that Hope wants the shares because they are worth more than the 2 million pounds that he is owed, his half a billion shares would be approximately 1/18th of the whole company, implying that he believes that the company's present value is greater than 36 million pounds (and presumably much greater given the fact that he is willing to go to the hassle of going to court for it). Assuming the lower bound of this value, 36 million pounds divided by 9 billion shares suggests that the present value of our FRR shares must be at least equal to 0.4 pence each and potentially far greater than that.
Gipps - with regard to your question "why doesn't ZM simply pay him out of his own funds", I think if it comes down to it, I think he will do so. In the meantime I think Zaza wants to keep Hope waiting for his cash as long as possible, knowing that the loan/JV/FO is coming at any moment. I do think however that a re-list is coming, given the fact that Zaza has hinted that he wants to make the shortens suffer for the damage they were trying to inflict on the company.

I would like to play Devil's Advocate for a moment or two. Rather than assuming that our FRR shares still hold some value, suppose instead that they hold no value. Why therefore would Hope, under this alternative thesis, be going after ZM/SN personally via the courts?
1. Is he going after ZM/SN simply because there is no point in going after FRR any more as it is effectively unable to pay any award made against it? This is possible, and perhaps implied by the court case filed against us by our own lawyers in the Caymans. Note however that if the FRR shares were worthless, Hope wouldn't give ZM/SN the option to pay him shares in lieu of the default. It just wouldn't make sense for Hope to do so. ZM/SN would simply issue him 500 million shares knowing that they were worthless. Hope would have been "paid" in shares, but it would have gained him nothing. So we have to assume that the FRR shares do in some way have value.
2. If the shares only have residual value, ie FRR is bankrupt and its only value is as part of a liquidation of its assets, what would Hope be hoping to achieve? He is already the primary creditor, able to call on any residual FRR assets in any liquidation and is first in this queue in this process. So getting these shares offers him nothing new and suggests other reasons are behind his latest court action.
3. Is he after voting rights that these new shares would offer him? FSHG members have 4.4 billion shares, ZM/SN even more (even after giving Hope 0.5 billion) so voting rights don't seem to matter. Hope would easily be out-voted in any agm etc, and he would know that, and this suggests that Hope is not after the voting rights.
4. Has Hope shorted FRR and like us was caught-out by the de-listing? Does he need these shares to effectively counteract the damage that these shorts would create on a re-listing? I personally doubt this: for one thing he would be extremely foolish to have personally shorted FRR given his FRR directorship. If the court-case has taught us anything about Hope, it is that he is not stupid. He may have sold information to others who are now in real danger if a re-listing occurs, but probably not himself. And lets not forget that FRR allege that he was personally responsible for creating the de-list itself.
So in conclusion, at the moment, the only other reason that I can think of why Hope has filed this action is because he knows there is indeed real value in FRR and his 500 million shares would be worth more than the money he is presently owed. He wants the shares now before FRR are able to pay him in cash. Its for this reason that ZM/SN are refusing to pay him until that cash has arrived. This whole saga may be stressful and time-consuming, and the end of the tunnel is still to show itself, but it does look as if it may soon offer us all a good chance to come out of this with some money in the bank. GLA

Ziggy
With regard to the statement that FRR can’t issue additional shares, I assumed that this was to prevent dilution to the value of shares promised to Hope in the event of a default. It effectively also enforces your first point that Zaza and SN are personally liable for the the 500 million shares out of their own personal holdings.

Thanks for your post pyro. I used to always enjoy your posts and am pleased you posted today. Enjoy your visit to somewhere sunny.

It would be good to hear the views and insight of the likes of Mole, Devex, Seymour etc. They have all disappeared. Whilst I can understand their reluctance to comment when there is no news, on a day like today, when we do have news, I would have thought that they would like to share their thoughts for the benefit of the rest of us. The fact that they don't post anymore suggests to some that there is a conspiracy of sorts going on, where some or all of them have either been told something regarding FRR's position or have worked it out for themselves. Mole suggested when he last posted that he didn't like the way that Zaza and co were conducting the case, and yet, since then we have heard nothing. Devex and Seymour used to post regularly on ii (and Devex sometimes here too). So to the three of you (and others that I have failed to name), I ask that you break your silence, if only temporarily, and let us know what you think might be going on here. Are we as shareholders likely to be filthy rich or considerably poorer?

Thanks Finn and Tsbs. Trying to read the docs on my mobile.

From what I have just read, the 500 million seem to have to come from ZM and SN’s own personal holding, rather than be from newly created shares. Have I got that right? And Hope doesn’t seem to want an alternative to the shares, again pouring to real value in the shares we all hold. What do others take from Taffy’s Posts?

Please bear in mind however that there are several FRR companies. Just because Hope can’t get at his money, doesn’t mean that all FRR companies are broke, just the one that Hope has access to.

The negatives
1. The trial is set for July 7th 2020, for approximately 2 weeks. The lack of communication with us lowly shareholders so far has always been justified in terms of the various court actions, but is this really viable or legal for another year on top of the 7 months we have already endured?
2. Discovery and ADR have yet to commence. These are the main reasons for the 1 year wait until we get to trial.
The positives
1. The action has of course been placed by Fronterra. This implies that they believe that FRR will still be up an running by July 2020, supporting the DOS made by Zara and SN.
2. If Zara is to punish the shorters, as many have speculated is one of his sims, then as I understand it, he will need to do so within a 12 month timeframe. A re-listing will take time however, which implies to me that some news of that re-list cannot be too far away if he is to meet that self-imposed 12 month deadline.

Kaiser
I took it to mean that FFR are no longer paying someone to lobby on our behalf, either because we no longer need their services or because we can’t now afford their services.

Good work Ziggy - would Shatner care to respond?

Pleased to read your poss CF73 and Arsenal - I'm away on business in Asia at the moment so I naturally am finding it tricky to keep up to speed with events. No news is still good news, imo, although some real good news would be even better. GLA

Coggy also makes comments on the Nano BB on LSE - look up his history

Is Barrow about to become the richest town in the UK?

Great post Zib. I’ll sleep well tonight. Thanks

It’s certainly hard to read Ivy. Keep up the good work.

Is there a link for this Ivy, or was it in Russian? Not sure what the tweet is trying to say. Any ideas?

Thanks for the update Ivy. I kept checking all day , eventually giving up! Good news though - perhaps the DoS really has been accepted.

Devex’s response, on ii, posted again this morning

Agree with most of that - but the challenge is that de-listing removed the possibility of having tradeable equity as a key part of the loan arrangement. Not a show stopper but it does reduce options - and requires different approaches to securitisation

But with Hope out of the way, at least as a Director, the BoD will again have been able to look at all options. Personally I think this will end up as a third party deal rather than any new loan facility - unless the loan is simply to get rid of the Outrider loan notes.

The fact that on June 23rd we still have an operating entity - albeit working behind tightly closed doors - clearly bemuses certain people. And like the Fozzer the longer this goes on for the more confident I get.

Courtesy of the Fozzer on ii, from earlier today

Post 1: Have we locked in the DOS?

Maybe we have. My basic understanding of Cayman liquidation law is that if the DOS is not accepted the courts must supervise the liquidation (see link on ii). So far I cannot see an application to the courts to oversee such liquidation. The voluntary liquidators will be under intense pressure to be seen to conduct matters in a fair and legal manner.

A structured guide to liquidation procedures in the Cayman Islands

The longer this goes on the more I’m confident.

To add, I think that the liquidators can at anytime during the 12 months “grace” apply to the courts to oversee a court supervised liquidation. See below link, so it could be a case that FRR have lodged the DOS and now the liquidators are monitoring the situation. I would imagine that a loan or farm out must have been part of the DOS as even if FRR are pumping out 1000bopd it’s not enough to cover the $30m. debt.

“It is an offence to make the Declaration without having reasonable
grounds for so doing. The penalty on conviction is a fine of $10,000 or imprisonment for up to 2 years or both. If the
liquidator at any time during the liquidation forms the view that the company is or is likely to become insolvent, he is
legally obliged to put the liquidation under court supervision.”

Post 2
Assuming B12 is a “gold mine” of potential, FRR can now see through any loan or farm out without Hope’s direct interference. The loan can be used to repay Hope and the liquidation put to bed.

I would imagine a lender would want cast iron guarantees that the Georgian gov will not take back the juiciest parts of B12 - enter Uncle Sam and the reason FRR spent so much on lobbying and the AC.

Heck, Zaza can even still pursue Hope through the Cali courts for the fiduciary duties case if he so pleases. Was this whole exercise just to buy time?

Suspect there’s many moving parts here but management do appear to be hard at work to see this one through.