Member Info for ZiggyZag

Zen
Zen
I would say you are correct , this is the oil contract.......not asset sale .
Re Green being treated favourably above other creditors.
Seems to me that liquidator has sold the asset to Green for the value of their debt + $125k so just shy of $6m.
That has the benefit to the winding up process of wiping them of the list of creditors whilst at the same time putting money in the pot towards final divi up for remaining creditors .

Pyro
That was the masterplan but bugger me it ain’t going to happen now you have let the cat out of the bag .

TSBS I think price they paid in consideration of the asset was only $125k , so presumably they forfeited their $5.8 claim as part of the deal......resulting in largest creditor put to bed.

Njames, thanks for your response 19.16 , that was my understanding but like you very confused as to why Hope was not given asset, hence my question .

Looking again does the answer lie in that the door of opportunity was opened for Zaza when FRGC was put into liquidation in Dec last year and subsequent court supervision in Jan this year , with Green being the largest creditor of FRGC and presumably Hope having no creditor status .

Ok , going to ask a silly question here .....Is Hope a creditor of the companies in liquidation ?
I realise he held the asset as security against the notes and the default enabled him take control via Maples with subsequent liquidation , but is he a creditor of Co’s in liquidation or our FRR parent company re his $40 odd mill.?

Looed ,
Many thanks for posting their message to us.

They say :

.. the attempt to convert and steal Frontera’s holdings has been blocked. ...

Presumably it refers to Green Cap action .

ODR points out the Caymans angle , on that crucial front it would be good to know exactly where we are re FTI in reference to .....WHO ......under company laws .....currently holds / controls the key asset that was in the liquidated companies.

ODR
Just a thought , if asset has been trans to Greens in settlement of their debt re corporate law , and assuming GG say no to them , is it still then theirs to move on / partner with someone else as opposed to going back to liquidated Co .

ODR
Yes agree as money talks .....but if its goes back to liquidated Co / control of liquidator ,presumably anyone who has the funds and meets licence requirements would be able to pick up the asset from FTI , no need for us as a partner.

ODR , whilst not being in the category mentioned in your first sentence I think we are goosed. If by some miracle we got any rights back we would need significant funds from some entity to progress . If you had those funds would you be happy to invest in FRR given its track record .
Also seems by being able to pass on asset to Green , FTI have been able to nullify any “corporate “ transfer of it out of the liquidated company so assume it goes back under their wing if Green are excluded.

Many thanks looed for latest Docs
In the papers Zaza states:

9. FEG was originally owned 50% by FRGC and 50% by JSC Georgian Oil Gas Corporation, a state-owned enterprise. FRGC’s 50% interest in FEG was recently assigned to Green Capital, LLC (“Green Capital”) as part of a Cayman court-supervised liquidation process. A true and correct copy of the Cayman court order approving the assignment of FRGC’s interest to Green Capital is attached as Exhibit B. A true and correct copy of FEG’s current registration certificate, showing 50% ownership by Green Capital, is attached as Exhibit C.

I am sure he is putting his own spin on events but above does refer to supporting docs from Caymans court so have to assume its true.

What I don’t understand is Hope brought Maples in to take control of asset owning Co’s.
Maples then brought in FTI to undertake and manage liquidation presumably in order to allow Hope to take control of asset as per the note terms.

But now is appears that FTI under the umbrella. of the liquidation and the supervision order have allowed the asset to be given to Green which must be to the detriment of Hope .
Presume Hope is not a creditor of liquidated Co as his debt is with Parent , so seems Green coming out of the blue with their $5.6 m debt in liquidated Co are it largest creditor.

Just don’t get how they have had the asset given to them , as assets in liquidation are realised in order to share out to all creditors ....unless they are the only one, but again we have seen nothing re FTI wrapping up in NY/ final creditors meeting with divi up schedule.

Some comfort for us ( And I assume Hope ) that the TRO has been granted ....but if FTI have assisted in the assignment to Green you would think they would have followed the law stringently.
One thought is was maybe Green / Zaza brought this to Cayman court and FTI opposed it but lost , but I think liquidation laws do not allow court actions against a company in liquidation by anyone .

All now well over my head and pay grade ....WTF

Looed , thanks for the info.
SN basically says he had no idea that this was going on until the deed was done .

I do think it strange that FRR being on bad terms with Zaza have had no ear on the ground in Georgia .

Even more so if Moles theory is correct that FTI have left Zaza in situ in the liquidated Co’s .

Zaza in control ....loose in Georgia .....major fall out between him and SN months ago .....and yet SN , LG and the rest of our new directors appear not have any one monitoring Zaza’s actions .

When you have a serious fall out , which includes legal cases between Zaza and SN and serious money is at stake you would think that FRR would be in contact with FTI questioning the fact they are still allowing Zaza to excerpt control in Georgia .

Really cannot believe that between them FRR and more importantly FTI have left the door open for Zaza to do this .

Tsbs1
Doesn't the asset stand as security for the loan notes , with the default event on the note agreement triggered by non payment of the agreed interest in Aug 18 , which then led to the liquidation process .

Tsbs1
Thats the reason for the liquidation process , he hoped / hopes to get the asset in lieu of the debt .

So give it a rest eh

Whamboy , It pains me to say , but if Zaza has fecked us ( or is trying to) then I will be rooting for the liquidator to get the asset transfer made illegal .
If that means Hope gains well at least we knew his agenda as opposed to possibly being being betrayed by someone we trusted to look after our interests .

Hi Welloiled , thanks for your research . Must say though I am loosing track , what is the bottom line on this (to date ) ?

Welloiled
Found the NY docs page 28 on Mads archive . Does not mention Green as I thought but says ...

47. Pursuant to an agreement dated April 13, 2019 (the “Farmout Agreement”), just a few
weeks before the voluntary liquidation commenced and the Liquidators were appointed as JVLs, FRGCpurported to assign all rights, obligations and interests in the PSC to Frontera Resources US, LLC(“FRUS”), a Texas limited liability company that is an affiliate of FRGC (the “Assignment”).7
48. The Liquidators did not learn of the Farmout Agreement until nearly a month after the
commence of the voluntary litigation, when they received information from Akin Gump. The FRCC
Directors subsequently provided a copy of the PSC and the Farmout Agreement.
49. The Farmout Agreement and accompanying documents provided information in relation
to the consideration for the Assignment. Based on the limited information provided, the Liquidators cannot determine whether these transactions were arms’ length for fair value, or potentially a questionable transfer of the assets of FRGC (and thus FRCC) to a related party, all concurrent to thevoluntary liquidation of FRCC. I should note there is a significant difference between FRGC’s Counterclaim in the Arbitration of $3.5 billion and the consideration FRUS purportedly paid for 95%of FRGC’s rights and interests under the PSC under the Farmout Agreement.

However earlier in the docs FTI state they have reviewed various court docs submitted in various Cali cases leading on from the Caymans cases. No doubt this would include the ref to Green Capitol Llc as shown in Jims 16.40 post today .

Welloiled
I do like your speculation posts . Think an element you have not included is FTI and their impact on the story . They have liquidated FRGC and have it under Caymans Court supervision . I believe Georgia and Caymans as well as USA are party to United Nations UNCRITAL agreements re cross boarder legal disputes including insolvency cases .

Mole in his thoughts the other day speculated that maybe FTI had asked Zaza to represent the Co because of his knowledge etc .

Not sure if I agree with that view as FTI have documented a number of times in Caymans and US courts how unreliable , unresponsive , and misleading Zaza ( and others) have been re their investigations .

Not got it to hand but in their NY papers didn’t sure they (FTI) refer to the asset farm out to Green Capitol , linking that to their “charge “ of was it at fair value , and you have to imagine after over 12 months of investigations they would have delved into that crucial part of their case .

No idea how Zaza came to be the rep in the case in Georgia and I am going to speculate a very left field reason, i.e. FTI were not aware of the case listing in Georgia ......yea I know ...but I think thats more feasible than them trusting Zaza to do the right thing in representing FTI ....and errr....HOPE .

These thing don’t happen overnight or on a whim .
IMHO
Negotiations with Rosgeo will have been going on for months as they will have also been with Japanese.
Rosgeo will have been in the loop re who’s offering in FSP and also ongoing with the Japanese angle .
Rosgeo knowing about the Japanese, and FSP progress ( i.e. who , final outcome ) were happy to sign off the JV
FSP has not been pulled , if it had failed would Fridays RNS not have been a good time to announce that fact , being softened with the Japanese news , or indeed in the Rosgeo RNS .
Final act just around the corner .

Jim
Thanks for posting the reply.
Do like the bit
.... Frontera have progressed a cleanup and reorganization of the company's management team under the direction of Frontera's board of directors......

Cleanup eh , maybe all the past posts re CIA connections were correct then .