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California continued

lse:frr

#81

Just confirms my view that there are and probably always were.

1 - get rid of Hope. Done.
2 - protect the asset. Done at least for now.
3 - create the space that allows the time for other things to happen (ie a chunk of this is now tactical. Time will tell

Patience is a virtue - and I have become rather virtuous. (I have no other choice anyway)


#82

Now with missing words included…

Just confirms my view that there are and probably always were 3 objectives.

1 - get rid of Hope. Done.
2 - protect the asset. Done at least for now.
3 - create the space that allows the time for other things to happen (ie a chunk of this is now tactical. Time will tell

Patience is a virtue - and I have become rather virtuous. (I have no other choice anyway)


#83

Personally I’m massively disappointed. I could be wrong, but I can’t see a viable scenario of, ‘let’s play incompetent to buy more time’.
This seems like a massive error of judgment on behalf of the lawyers fighting our case and from the sounds of it pure arrogance not to listen to the judge.


#84

But does it really matter?
$1000.1 in the scheme of things
And what has happened in the timeframe?
We will live and learn
I suspect we may smile wryly

Hope is off the board, put yourself in his shoes
Doh!


#85

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 below link). 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.

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.”


#86

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.


#87

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.


#88

I am not confident at all. The lack of communication even between the registrars and the company is pathetic and the way that the company is treating it’s shareholders is abysmal. If it does re-list then I, and I’m sure many others, will be selling their shares ASAP.

There is no excuse for this non communication and I don’t accept that it would endanger or compromise any court case.


#89

Chin up Jay buddy, we’re all feeling the pressure of this one, I’ve a significant investment here of well earned money so I feel you anxiety. I’ve no crystal ball but I honestly think this will still come good.

I think that FTI consulting has tentatively accepted the DOS which could be great news for investors and means that we could hear something sooner than most think.

I also think that Hope may be coming to the realization that he won’t be getting his hands on B12 and may have conceded to “just” getting $30m back on his 6/7 year $4m investment.

I don’t expect to hear anything from the company till this is resolved as I suspect this could still be a fluid situation.

Best wishes.


#90

Fozz…Sensible response, we can all hope it will eventually come right and we’ll get our just rewards. In the mean time we can only wait for that day of judgement!

Eyeson…No news is good news as they say!


#91

I don’t think it would be sensible to make any developments common knowledge at this point.
The less Hope and his legal team know the better regardless of good or bad news.
The one thing I do know is there ain’t much you can do about it atm !!


#92

I keep thinking about the YA capitulation. Why did they do it? Were they involved with underhand dealings and , when Frr found evidence, agreed to help with discovery? I think we could be more positive on the potential outcome if this gets to trial.
Hope could well be under a great deal of pressure right now. Have no sympathy for him.


#93

You’re all not getting my point. I don’t want to hear what’s going on or what’s been going in the courts. A simple tweet or something on their website stating something like “we’re still here” would suffice. The problem is, I fear they don’t have anyone in admin working for them anymore. It’s a bit much when the former registrars, YJ and shareholders are emailing them with no replies.


#94

to be fair, if I was running FRR at the mo I wouldn’t be responding to emails either. Any enquiry would be viewed with deep suspicion in case Hopes mob were behind it.

TP


#95

To be fair, jt, they clearly are still there.

And even if they did tweet “lights are still on”, I suspect that while you might be temporarily relieved, soon you’d be wanting to hear more.

Am I wrong?

Not saying I like it any more than you do. But this was always high risk.


#96

Quiet here this afternoon. I’ll spoil it by telling you my interpretation of Hope’s attempted takeover.

Obviously, Zaza thought the fiduciary case was necessary. He was right. I’m sure that it was the pressure of the impending case which caused Hope to make his move to take over the whole company - he wasn’t to know that he was only going to get a baited subsidiary until it was too late. But he had the fiduciary case pending, the passing time allowing FRR to become more solvent, and a strong possibility of discovery ruining him - so he had to wipe FRR out before the trial, which caused him to attempt the takeover. And as this was an obvious attempt at deliberately selling all the company’s assets for his own benefit, he had then to immediately resign as director or leave himself without a defence to an obvious, and very serious, fiduciary breach charge. So he jumped, no doubt thinking he could distance himself from the takeover while leaving his gang in charge of the company (“they’ve done what? Crikey. Nothing to do with me, gov.”). HaHaHard luck, mate. I would say that Zaza’s plan really worked. Hope has gone. Brilliant. The fiduciary case has already performed stirling work.

So are FRR going to proceed with the court case? If they do have very strong evidence to prove that Hope deliberately worked to seriously suppress the SP or otherwise bring about the decline and fall of FRR (and which couldn’t be said to be in the interest of Hope’s debt repayments), then FRR should go ahead with the trial. It could get Hope off our backs for good - and there are about 57 million other good reasons for proceeding, too. But if FRR do not have that very strong evidence, then stop the court case as soon as sensibility allows, and let’s get on with business.

If I’m right about Hope being forced to jump through fear of possible (probable?) strong evidence, then it really does look like that evidence exists. But only the main Frontera protagonists in this fight really know if it does. I wish them good luck.


#97

Great post qed123,

Having read the court docs I don’t think FRR have strong evidence against Hope and are unlikely to beat Hope in court. Of course there’s always the chance that something may come up through a discovery.

However, the whole court case process has bought FRR a lot of critical time and I’m assuming allowed FRR to proceed with a loan to move forward operations and pay off OMF.

What next? I guess the longer this goes on the better it looks for the declaration of solvency. So I’d like to think once things are finalized that shareholders may get an official update.

Hope must be seething :slight_smile:


#98

Works for me, qed. I repeat, why did YA capitulate?


#99

Indeed, and why did Hope give up a position of advantage on the board? I believe that FRR (or at least their counsel) did say in one of the court docs that he resigned because he was concerned about the fiduciary implications of the attempted takeover - and that’s the only reason that makes sense. I think he’s running scared.


#100

Qed it is clear they do not have evidence yet.

From the last court document. Worth repeating.

Mr. Hope acted to protect his security interest, to the detriment of Plaintiffs, and opposed decisions, using his effective veto power, to block actions that could have assisted Plaintiffs. In addition, the Outrider defendants are parties as they are alleged to have aided and abetted Mr. Hope in favoring his own financial interests. (See Dkt. 1.) Some of these issues were, admittedly, raised in the prior action based on the facts as they were known to Plaintiffs at that time, and some facts and allegations are not yet able to be proven, since discovery has not commenced.

But they may well be sure that discovery can/will unearth the required evidence. I feel there is little doubt that this is where we are with regard to evidence.