Well, another week comes to a close and apart from the email from Yellow Jersey, we are still none the wiser on what is going on. But to be fair, news this week was going to be on the low side after the festive period. In fact I think news next week also looks pretty slim.
Anyway, I started trawling through FRR’s Twitter feeds and it was interesting to note that they first posted a short video clip on the oil seep at Taribani on the 27th Nov, and then the black & white picture from the 1960s of the blowout at B-16 (BTW is T-16 the old B-16?). This was then followed up by another 2 short video clips of oil seep on the 2nd December. Just a supposition but I believe these postings may have been done to support the financing discussions. Actually nearly 3weeks after those tweets, we got the RNS confirming a indicative terms sheet had been signed. And the fact this was achieved without Mr Hopeless being around, confirms the company’s allegation that he was not acting in the best interest of the shareholders; another bit of evidence to support the Fiduciary breach.
So, back to the reply from YJ, it could be that the lenders have indeed completed a site visit now and if so, we should be in the final stages of legal documentation. If this is the case, we could be in a position to repay the debt if the injunction is lifted. Remember, legally, once a noice of default has been served the company is given specific period to repay the debt before the collateral is called upon. But for sake of balance, there is still no guarantee that financing will be approved, so let’s not get ahead of ourselves.
As far as the fiduciary case is concerned, I think FRR has a good case, and they will be doing the investor community a service if they elimated this vulture fund by winning the $56m case (#Madagascar Oil). In fact, I was doing some research and couldn’t find another situation where a bondholder was appointed as a Board Director, because it can lead to an indisputable case of conflict of interest. But surely Hope(less) couldn’t have been that stupid!? What I do know is that bond holders are normally organised through a steering committee and not via representation to the Board.
Anyway, just some thoughts while we continue to wait.
Happy weekend all.