So every time there is a cash call, its likely RSM will scream Arbitration to give themselves time to pay. I wonder if the first cash call of US$4.1m received from RSM, following the ICC Arbitration Award was in Cheque or money transfer? If its a cheque, have the company RNS'd the payment 'post' cleared funds!?
Getting rather predictable, and shows the fragmented nature of the relationship between RSM and VOG Management. I hope there will be no statements in any further ruling that the VOG management issues the default notice 'too early' again!
Atb Fraser
Fraser- looks like the mkt likes the VOG news- perhaps they feel VOG will get the whole of the asset back in due course, but they are now embroiled with a serial arbitration user, Jack Grynberg, who has a track record of playing often and long in the arb courts.
ReplyDeleteBP for one (re their Kazak assets) has been tied up in arb knots since 2009 and he has extracted circa $200m from these cases to date. So good luck with getting that asset back and don't underestimate his tenacity, despite the fact he is now well into his 80s, as he seems to take a very personal interest in these cases.
I have no VOG interests to declare here, so good luck all holders.
Cheers. The Leggie
Leggie, I suspect there's a cashflow problem as someone appears to be stalling for time. One thing people tout round about Jack Grynberg was the "$200M" he obtained. This wasn't specifically correct, he got 15% of BP's licenses in the Caspian Sea valued at $200M, he also spent around $20M fighting it (approximates in the press at the time), his success is somewhat skewed if you consider the actions and results including what he's had to pony up originally. Summarised I think by the Torygraph and others...I think Mike Smith covered it as well.
ReplyDeletehttp://jenner.com/system/assets/assets/4716/original/G.pdf?1320256253 Covers some of the issues...
What Victoria Oil & Gas (VOG) have is unusual compared to other proceedings, that they have clarity on judgement. The appeal or 'emergency' judgement will verify this in due course. The awards and decisions cannot be appealed and as such the judgement in my view will merely restate what the original determination was. Interesting times ahead…
On another topic, there were some suggestions that Metro Baltic Horizon (MET) is likely to have some form of out of court settlement. The caveat with this is, I think it’s a rumour based on another company as it strangely had very similar items/numbers.
Atb Fraser
Fraser- I take your point re the net outcome for Jack Grynberg's BP actions- I believe he is still pursuing them re some suspect payments made plus he had some success re Grenada too, so he appears to like a fight and will appeal where possible. I haven't seen an emergency judgement in action, and as you say the original outcome was pretty empathic so I hope VOG get this settled asap for all holders.
ReplyDeleteRe MET, I believe the previous mgmt, who are being pursued here (as well as Ernst and Young- the counterclaim appears to be made against their final audit bill, which was apparently unpaid, given the circumstances) have commented that they have some form of insurance, so the insurers will have a say in how long the MET legal claim is allowed to gather steam (and costs). A figure around 20% of the E26.6m claim against the previous mgmt has been banded around as a possible settlement, albeit this could be propaganda from either side so Im happy to wait and see (as usual :-)) here.
Cheers. The Leggie
Leggie, what people need to consider is the level of shorts, so far only one declared over the threshold, I suspect there's a 'few' others!
ReplyDeleteJust been looking at Office2Office, having closed a short there too early (40 pence), I'm considering when the flow will change, if ever. Today's trading update raises cause for concern and "restated" elements. http://www.investegate.co.uk/office2office-plc--off-/rns/trading-update/201401130700074442X/
Another 'non' surprise in today's is Homeserve, after their recent positives, I wonder if there will be decline in sales/revenues by year end. Something which is common post a deterioration of Grocery Sales. http://www.investegate.co.uk/homeserve-plc--hsv-/rns/statement-re-fca-update/201401130700084456X/
I'm looking forward to March 2014, with MOG Vs LGO, I do hope there's not a chronic attack of dyslexia and the award goes to the wrong party. Now speaking of noise, LGO's shock at the Genel news shortly after parting with their Malta License for $1/£1 or whatever it was...I have a view that 'on the face of it' I wonder if a court will find Mediterranean Oil & Gas Plc were disingenuous with the facts of the discussions. Would LGO have given up their rights for so little? It comes down to the word of the small print and at what stage discussions were at when LGO made an intimation they wanted to walk away. Did LGO have rights to that information, from a recent experience myself, when parties are in default they are not obliged to any information. You cannot 'owe' monies and expect to receive financial news. Akin to RSM expecting profits when they are in default of the amounts stated today.
An interesting year, with "little" news on Oxus Plc's progress.
Fraser- I use 2 companys to check shorts and they very often don't agree, plus the policing of reporting seems almost non existent so I guess most shorts stay in the shadows if they can
ReplyDeleteRe MOG v LGO- That Genel deal did come v close to the MOG farm out, so I sure LGO were v surprised but as you say they now need to make sure they have the paperwork to back their claim. Im not in there but I do hope some form of nature justice is the final result.
Re OXS- Ive got the case down as taking place in Feb 2014, and so I guess things will start hotting up there too soon. It could be a fairly big year for the big UK arb cases.
Fingers crossed. The Leggie