From Moosematics on lse…
Section 42 and Section 50Today 18:20I think Section 42 says that Hope/OMF can only get what is due to them ie $2 million interest.
However, the final sentence of Section 50 offers a lifeline in that they shouldn’t take their $2 million and damage FRR’s “considerable market value”.
So, if the $60 million term sheet is a go’er then ALL the parties should be able to work together to find a debt restructure that protects creditors and the Company. Essentially this is the OOCS except that Hope/OMF won’t be paying any compensation to FRR but I feel that they are prevented from embarking on a fire sale and now obliged to work together to restructure the Company’s debts and realise value for creditors and eventually shareholders.
At this stage the only thing that is lost is gaining compensation of the fiduciary duties and unlawful interference bit. It feels to me that the assets are protected and their existence acknowledged via the “considerable market value” comment. Protection of the assets is the key positive here.