It appears that Zaza+SN together with OMF have jointly submitted a request for a ‘Protective Order’ in the Texas case. This order is designed to prevent any ‘public’ disclosure of certain information to be discussed either in writing or orally during the Texas hearing [7th January 2020]. More importantly it could be related to information uncovered from the Discovery Order that was granted to FRR in the California Fiduciary case in May.
For recollection, worth reminding that the Texas case was initiated by OMF against SN & Zaza for liquidating their personal guarantees issued to OMF for the payment of the US$2M coupon that was due on the CLNs in October 2018.
So [to me] it seems crunch time has arrived for our two guys, its either pay up or to shut up. By this I mean that our guys will either have to hand over US$2M under their guarantees or to dish out the dirt on Hope [within the confinements of the 4 walls of the court].
So, what ‘dirt’ do SN+Zaza have that they are requesting a ‘Protective Order’?
Well, in the original Fiduciary case, FRR alleged that Hope had been involved in market manipulation and illegal interference with the NOMAD.
At that time, we speculated that perhaps Hope was involved in huge forward selling of FRR shares that he was pretty confident of getting from SN+Zaza as FRR did not have the money to cover the interest payment. During late Sept and Oct 2018, we observed massive abnormal trading activity in FRR shares, with huge numbers were being sold in a rising share price [up to 800million in a space of 5-10 trading days]. Some probably related to YA as they were also expecting to receive shares for Sept installment which was paid in cash by FRR and separately the two renegotiated the terms of the SEDA loan - incidentally no news on that front means FRR repaid the US$2.1M which was due in July 2019.
Anyway, the Discovery Order gave FRR the legal right to ask YA if they had acted on behalf of Hope to forward some of these shares. It will also allow Jo Turner (NOMAD) to provide a statement whether Hope illegally interfered with his duties by pressurizing him to release some info in to the market.
Whatever the case, January is going to be an important month and PERHAPS the beginning of the end on all these legal cases… a conclusion to the Arbitration, an out of court settlement to the CLNs with Hope, jettisoning the Fiduciary case, employees getting paid, conclusion to the farmout agreement or financing agreement.
Who knows……. and who knows how much oil is being produced from the 3 wells we [the shareholders] financed: on T45, Dino-2 and T39. Lights might be on but workers not getting paid is not a good sign either.
As a big fat bloke dressed in red normally says during these times………Ho, Ho, Ho - Merry Xmas.