Gordon and Wodewick
I asked if I could share the answer and was asked not too. It was by no means definitive but I took it as positive. As I said before I am clinging on to every chink of light until it is finally turned off.
Gordon and Wodewick
Thanks for the reply. Still very confused as to why information can be given out so long as no one else finds out.
Interesting reading the latest FRR submission. I personally think FRR lawyers have presented a strong case for the preliminary injunction to be granted, supported by many relevant cited/reference cases, which should make it relatively easy for the Judge to make a decision. But we also know that Judges are fickle/moody creatures, depending on which side of the bed they got out of.
Anyway, still no sign of a smoking gun but nevertheless, I think FRR has a good case for the breach in the fiduciary duties. In the latest submission, FRR highlights that Hope has openly admitted that he was conflicted and his first priority was Outrider and not to his Company or its stakeholders. I wonder if he will repeat these admissions under oath and in front of a Jury? What’s the penalty for lying in Cali?
Also, many People are saying that we have defaulted on a debt and all Hope is doing is collecting his debt. Well, that is true and it’s indisputable. Also, it makes no difference how much Hope paid to acquire these distressed CLNs - FRR owe the par value of the notes. Trading in the distressed debt market is a trillion dollar business and you can’t argue on the debt contract, although you could try to negotiate with the debt holder.
So what came first? Debt default or breach in fiduciary duties; a bit like the eternal unanswerable question, did the chicken come first or the egg? Anyway, the default wouldn’t have occurred if Hope had sided with the other Directors and approved the two lending proposals because that would have allowed continued operations (and payment to the creditors), besides there was no other options available at the time. We have said many times that Hope (as FRR BoD) should have approved the lending propositions but declined them at the OMF end and he would have been well within his right. I also recently posted an excerpt from the MOIL case, where there was a specific provision in relation to Outrider Director and Conflict of Interest/fiduciary duty, so he knew what he was doing when he came on to the Board (in Feb 2017).
So the question remains, will the Judge accept FRR’s version that Hope openly admitted that he didn’t give a hoot about FRR despite being its Company Director? Openly admits that his first priority was to Outrider and not all the Company’s creditors/stakeholders? Or confirmation that his intention (and Outriders business model) was always to takeover the company for the sole benefit of himself and Outrider? Well, his actions since the cessation of Cayman Island proceedings, confirms yes!
So back to the core question (no, not about the egg & chicken although that still deserves more pondering), did the Fiduciary breach lead to the debt default? If the answer is yes, then you might be ok, otherwise, Nicandros may have deliberately initiated a high risk ‘Mexican Standoff’ with Hope without knowing who is the quickest to draw. Let’s pray is Clint Eastwood vs. Jr Ewing.
Feeling nervous, let’s pray there is a backstop from the much famed $150m loan although I give this no more than a 10% chance right now.
Good Morning SB,
10% chance of the 150m loan? I’d agree.
A 22m cash injection is urgently needed into the business to get the liquidators of the company’s back or the judge to grant a jury trial, this would bring Hope to an Oocs. Does FRR have a fairy godmother? If so now is the time to wave her wand!!!
Fozz, FRR has been trying for ages to secure new financing but has not succeeded. The numbers keep getting bigger (reminds me of gas resource estimates) but no conclusion. But you never know, may be it’s real this time but obviously will only happen once the court case is now concluded.
Anyway, also interesting to note in the latest FRR submission are the details supporting the illegal interference and collusion, with MND (+VtB) and Lothian. I assume this is to demonstrate to the Court Hope has been working against FRR for many years. Perhaps when we get to the trial, the Jury hears these accusations, may be they will see Hope for what he is.
On the Madagascar Oil situtation, which Outrider successfully acquired via the purchase of distressed debt, MOIL obtained an Undertaking that the Outrider Director i.e. Hope that he will not vote in any Board Meeting where he is conflicted. I posted the link to the doc on this thread back on the 30th April, but main bit was this (from Page 16):
Undertakings as regards Investor Directors:
To procure that the Outrider Director:
(i) will not vote in any meeting of the Board where conflicted;
(ii) will not, without the consent of the Independent Directors, participate in any committee or action taken in relation to the conflicts between any Original Investor, Original Investor Director or their associates and the Company; and
(iii) will act independently from the Investor and have due regard to his fiduciary duties.
Hope to God FRR gets the injunction and can manage to get this to trial otherwise I have little faith that FRR will be able to raise the cash to pay off Hope.
Any thoughts what Hope is after? The license expires 2021 unless there’s a commercial declaration which I suspect there now is with T39. FRR not releasing flow rates kind of makes sense now with Hope on their back, I still think T45 and Dino were “disappointments” though but that T39 delivered.
FRR must be after a discovery to see if Hope had a plan with another entity…Exxon? GOGC? Block? If Hope had a plan being devised during his time as an FRR director then that’s a slam dunk for the legal side as can be argued in court his real “motivation” behind his decisions which right now he is arguing that he was acting within his rights as a creditor and the mortgage 2016 agreement. To be fair to Hope he seems to have acted within his rights as much as it pains me to write this. He must have had a plan don’t you think?
I would guess that for Hope this is no longer about the money and is now about cold blooded revenge. He will be happy that he has totally destroyed everything SN and Zaza have been working for over the past few years and if it costs him a few bob so be it.
Zaza has clearly pissed him off big time.
Nooooo, it’s all about the money as the Rap folks always say. I would say that I don’t believe Hope will settle out of court now unless his back is up against the wall. I’d say FRR’s best bet is to pay him off asap.
You just can’t help yourself Foz can you …
Best bet to pay Hope in full and grow the company.
To pay Hope Do they have money, who is willing to FUND?
This year we had two names ready fund?
BUT there is NO one to sign the … lines
Except we gave lots of money only on ZAZA
Bullseye talk in London and via other means.
Now we are been cheated our livelihood
And BOD trying to do the same with cheating Hope . Hope may be a bad character but FRR went to bed knowing so he cannot be blamed.
Who to trust now with our money?
Even diehard LTH like Semore says on 10% chance FRR getting 150m funding.
It all has to come to a head by July when they have to pay YA 2mill.
It’s highly unlikely they have that, so they will need a loan to pay that otherwise they will have YA on their back as well as Hope.
I actually think FRR has a 80% chance of winning the fiduciary case based on the revelation that Hope has openly admitted (in Board minutes) that his first priority was towards Outrider than the Company. How will he rebuke those claims as well as previously trying to orchestrate a hostile takeover, which has now been brought in to this case? He will have to answer these, under oath and in front of a Jury. Also there are plenty of test cases on breach of Fiduciary duties but few where a creditor has put himself in a position of conflict. He was so eager to get his hands on B12 that he started interfering with the NOMAD too. Fiduciary breach is considered worse than fraud!
On the financing side, given the situation we find ourselves in, I don’t mind a one in a 10 chance. But this is based on not knowing the current flow rates from the 3 wells drilled last year. If they are over 1,000 bpd, I’ll raise it 50%. But higher the flows rates, the higher the chance, and perhaps there is a clue that rates were ‘good’ because they have managed to raise the facility ticket size to $150M.
Ok Nickers. I suppose I just have to accept/assume you have some info that seems to be positive but it might have been better never mentioning it and the bit about being asked to keep quiet. With Boosters and all sorts about does it help genuine long term holders? I do hope you take this reply in the positive way it is meant.
Sorry I’ve been missing in action but I have had some pressing domestic matters to deal with over the last few weeks. Good to catch up with some excellent postings today however, including your last one which has raised my spirits somewhat.
In an earlier post you mentioned the previous hostile actions of Hope including his conspiracies with MND and Lothian Partners. Now if you check out the latter at Companies House you will see that they are effectively dormant with only one Director by the name of Andrew Knott. He has numerous other directorships however, including one of Kalan’s favourites Savannah Petroleum, where he is now President. I therefore start to wonder if Hope has an informal agreement with SAVP to sell FRR’s assets to them if he gets his sticky little hands on them.
To add weight to this possibility if you look at Lothian’s accounts for the year ending 31/07/2018 there is a strange note which simply states that
" During the year the company acted as agent for a person". Acting as agent for Hope would of course enable Andrew Knott to talk to other parties with a view to jointly developing the assets if Outrider were to be able to seize them. This could possibly be the smoking gun if it can be demonstrated that Hope was again colluding with others to seize control in advance of the loan default, and I would love to be present in court if that comes out under cross examination.
If that’s not the smoking gun I am sure there will be other examples which might only emerge once FRR’s lawyers get Hope into the witness box. After all he must have done some advance planning as to what he would do with the assets if he got his hands on them, and I am sure that FRR will have devoted a lot of time to digging up the dirt.
Previously Head of Global Energy Investments for Man Group/GLG Partners, prior to GLG Andrew held various roles at Merrill Lynch and DrKW.
This is the link to that document. Interestingly its signed 30 April 2019 but accounts for the period 2018. Its an interesting thesis posted by ToT as given all the critical problems regarding financial matters took place in or around April 2018 and the arguments over who and where the finance was coming from makes it all the more intriguing. If true it could go some way to confirming why Hope was so determined. Were Andrew Knott acting for Hope then Hope would be determined to undermine things at FRR.
Knott is a director of 18 companies, most of them oil and gas related, so ToT’s theory could very well stand scrutiny.
I note sweaty Karolina on the other board is full steam working frantically this weekend to save all the victims from themselves. For someone that posts so prolifically she has some agenda.
Great find TOT, could be worth forwarding to FRR.
I suspect the whole discovery request is to see what, if anything, the slicksters been up too. Steve obviously has a strong inkling but he needs proof.
Great to see you back Mr ToT, and as usual, magnificent input to the discussion. Yes, this Andrew Knott fella looks a bit dodgy and the type that would also ‘sail close to the wind’. If this does go to a Jury trial, FRR would well be within their rights to summons him to the witness box regarding his dealings with Hope and FRR when he was at Lothians. And we don’t know what info FRR already has it’s in possession. But I tell you what, having heavyweight, Rothchilds, in our corner will help compared to this snooty nose kid.
Anyway, one other major difference I want to highlight between our situation and MOIL and that is, in the MOIL undertaking, there was a specific provision relating to the Outrider appointed Director: ‘…will not vote in any meeting of the Board where conflicted’. Well, what did we give Hope when he joined our Board??? ‘Veto’ power, which he freely exercised by rejecting at least 2 lending proposals. Was he conflicted when he used his veto? May be that is why FRR went to Cali because they feel they can present a strong case (with their lawyers) and convince the Jury.
Who knows but with legal cases, it feels like rolling the dice…and I don’t know which way it’s ultimately going to go…
Thanks Gordon and I do take it the way it is meant. The inference was that BH are still working for FRR but not confirmed 100%. I was just trying to add some credence to Devex’s post - failed miserably really!
Thanks SB and also to Duknweev for posting further details about Andrew Knott. He does look like a weasel to me and given his history with MAN group he will have considerable experience of high frequency trading and short selling, so I wouldn’t wish to rule out him being involved in some way with shorting FRR’s stock to make it more difficult for them to raise equity finance, thus assisting Hope’s agenda.
Sweet Karolina on Advfn has a very similar posting style to Tom Winnifrith who frequently uses the terms ‘BB morons’ and ‘fuckwits’ to refer to the likes of us, so it would not surprise me at all to discover that there is some connection there. And let’s not forget that one of Winnifrith’s acolytes’ Easy Brent directly interfered in FRR’s business activities in writing to the State Agency for Oil and Gas in an attempt to get them to rescind the license for Block XII. I will therefore be bringing this matter to the company’s attention.
We now have to hope that giving Stephen Hope a right of veto on the FRR board does not prove to be a fatal mistake, and that’s why a jury trial is essential. Cross examination of Hope by any decent barrister should easily convince a jury how conflicted and self serving he has been imho, and if counsel can extract admissions of connivance with the likes of Andrew Knott and others that should lead to a substantial award of damages imo.
I hope it does go to jury trial and burn Mr Hope once and for all. I’m quite looking forward to it