CanArgo Energy Corp. (fka CANRQ)

[cunning plan]

The Terror Alert Level in the UK is raised

to "severe"

It's probably just ex-Canargo stockholders after McDonnell's blood.

[cunning plan]

The latest info:

http://www.sec.gov./Archives/edgar/data/310316/000095012310002364/u08168e8vk.htm

Section 1 — Registrant’s Business and Operations
Item 1.01. Entry into a Material Definitive Agreement.
See Item 1.03 below regarding the creation of the Liquidating Trust.

Item 1.02. Termination of a Material Definitive Agreement.
See Item 1.03 below regarding the termination of the Debtor-in-Possession Credit Agreement.

Item 1.03 Bankruptcy or Receivership.
As previously disclosed in the Current Report on Form 8-K filed on October 28, 2009 by CanArgo Energy Corporation (the “Company”), on October 28, 2009 the Company filed a voluntary petition seeking relief under Chapter 11 (the “Chapter 11 Case”) of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Chapter 11 Case is being administered under the caption In re CanArgo Energy Corporation, No. 09-16453. On December 23, 2009 the Bankruptcy Court entered an order approving the Company’s Prepackaged Plan of Reorganization Under Chapter 11 of the Bankruptcy Code in substantially the form of the Prepackaged Plan originally filed on October 28, 2009 (“Modified Plan”).

On January 8, 2010 the Modified Plan was declared effective (the “Effective Date”) and the Company ceased operations and transferred all of its operating assets to Blake Oil & Gas, a company with limited liability organized under the laws of the Bailiwick of Guernsey, British Isles (“Blake O & G”) and established a liquidating trust (“Liquidating Trust”) which will administer the Company’s continuing litigation against certain standby underwriters in the Company’s 2008 rights offering and distribute any net proceeds which may arise therefrom. The Debtor-in-Possession Financing provided by Persistency, a Cayman Islands Company (“Persistency”) has been terminated and all amounts outstanding thereunder have been converted into shares of convertible preferred stock issued by Blake O & G.

As soon as practicable after the Effective Date the Company will be dissolved and the stockholders of record on the Effective Date shall be entitled to receive trust interests as described in the Liquidating Trust agreement, certain creditors of the Company will receive ordinary shares or notes issued by Blake O & G, and Blake O & G will receive a preferred tranche of trust interest as described in the Liquidating Trust agreement. None of the securities issued by the Liquidating Trust or Blake O & G will be registered under the Securities Act of 1933, as amended, or the Securities Exchange of 1934, as amended. The Liquidating Trustee in respect of the Liquidating Trust is Walker Truesdell & Associates, Inc., 380 Lexington Avenue, Suite 1014, New York, NY 10168; Attn: Hobart Truesdell, Sharon Roth; Telecopy: 212-687-0994; Telephone: [phone]; Email: [e-mail]

The trust interests will be issued in uncertificated form, evidenced by notations on the books and records of the Liquidating Trustee. Pursuant to the Liquidating Trust agreement, the trust interests may not be transferred, assigned, pledged or hypothecated by a beneficiary, except subject to the following requirements: (i) to brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants of such beneficiary; (ii) any trust or estate in which such beneficiary holds more than a 50% interest of the beneficial interests (excluding contingent interests); (iii) any corporation, partnership, or other organization in which such beneficiary is the beneficial owner of more than 50% of the equity securities (excluding directors’ qualifying shares) so long as the beneficiary and the transferee certify that there is no current intention of changing the direct and indirect ownership of the transferee; (iv) any person or entity that holds directly or indirectly more than 50% of the voting securities of such beneficiary; (v) upon a will or under the laws of descent and distribution; or (vi) upon consent by the Liquidating Trustee. The securities of Blake O & G are also subject to certain restrictions on transfer. This description of the securities to be issued in connection with the Modified Plan is qualified in its entirety by the terms of Modified Plan and the Liquidating Trust.

A copy of the Order declaring the Modified Plan effective, as well as copies of the Modified Plan and the Liquidating Trust Agreement may be obtained via the Bankruptcy Court’s Case Management/Electronic Case Filing system at http://ecf.mdb.uscourts.gov and in paper format at the following address: Bankruptcy Clerk’s Office, U.S. Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, NY 10004-1408 (telephone number: [phone]) and the foregoing is qualified in its entirety by the provisions of the Modified Plan and Liquidating Trust Agreement.

Section 2—Financial Information

Item 2.01. Completion or Acquisition or Disposition of Assets.
See Item 1.03 above.

Section 3—Securities and Trading Markets
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As a result of the Modified Plan being declared effective on January 8, 2010, the Company’s common stock, par value $.10 per share, which had been trading in the pink sheets under the symbol “CANRQ”, has ceased trading. See Item 1.03 above.

[cunning plan]

And in other news....

Canargo management and Persistency finish stealing the company from its rightful owners.

http://www.google.com/finance?q=OTC:CANRQ

[cunning plan]

Officially Worthless

By Jacqueline Palank
Of DOW JONES DAILY BANKRUPTCY REVIEW

CanArgo Energy Corp. (CANRQ) may move forward with its plan to pay off its debts and emerge from Chapter 11 protection as a new company, a bankruptcy court has ruled.
Under CanArgo's restructuring plan, which the U.S. Bankruptcy Court in Manhattan signed off on last week, the company will transfer all of its assets to a new company and will then dissolve. According to court papers, the new entity will then issue new common stock and notes to creditors holding the bulk of CanArgo's $19.8 million debt load.
Specifically, CanArgo's senior lenders will receive new notes in the amount of the $5.4 million in principal and interest that they're owed on existing notes. Senior subordinated lender Persistency, owed $12.6 million, will receive all of the common stock in the new company, subject to dilution.
In addition to issuing new common stock, the new company will also launch a rights offering for its new convertible preferred stock priced at $1 per share. Persistency and CanArgo's general unsecured creditors will be eligible to participate in the rights offering, with Persistency slated to recover 1 share of this stock for every $1 it's owed on the $1.2 million bankruptcy loan it provided to CanArgo.
CanArgo, through its subsidiaries, explores and produces crude oil and natural gas in the former Soviet republic of Georgia. The company filed for bankruptcy in October after a failed rights offering left it "financially crippled."
CanArgo's restructuring plan will address the litigation spawned by the failed rights offering, in which the company sued several parties for not honoring their pledge to buy up to $19.2 million worth of unsold shares in the rights offering. Through a trust established under the plan, CanArgo's lenders would receive the first $7 million of litigation proceeds, while any proceeds above that amount will be distributed to CanArgo's existing common stock holders.
Under the plan, all existing equity interests will be canceled.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By Jacqueline Palank, Dow Jones Daily Bankruptcy Review; 202-862-6615; [e-mail]

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=6U60xXwSNLFNLajFFImqkg==. You can use this link on the day this article is published and the following day.


(END) Dow Jones Newswires
December 29, 2009 10:50 ET (15:50 GMT)

[Tutu]

ok thanks

[cunning plan]

File a compaint with the SEC:

http://www.sec.gov/complaint/cf942sec9570.htm

The more stockholders complain, the better the chances are they will look into this.

[Tutu]

ok thanks if you hear anything let me know i'm giving you a person mark

[cunning plan]

Well, you won't have to hate it much longer, but I'd keep an eye out for a new company in the oil business in the Republic of Georgia, because if things go well for them, you can join the other 15,000 victims of this fraud and sue the shit out of them.

[Tutu]

i hate this company for real

[cunning plan]

The pre-packaged bankruptcy plan calls for the establishment of a Guernsey based company to take over all assets from Canargo. The Delaware company would cease to exist. All common shareholders will be disenfranchised and Persistency will own all of the new company.

Management is giving away your shares.

The Court has already approved this.

I think it's a mistake, as it puts ex-Canargo Management and Persistency in a position to have to wait on developing the oil assets until the statute of limitations on stock fraud runs out. Of course they can always hope that the SEC person who conducts the investigation is a left-over from the Bush Administration wrecking crew.

But I guess if you are so fucking greedy that owning 25% of the company isn't sufficient so that you have to steal the rest...

Also, under the deal, Management gets to stay employed. Quite frankly, I would not employ people as incompetent and dishonest as Canargo Management. I think Persistency will fire these idiots as soon as possible.

This is because if Persistency wants to do anything and keeps ex-Canargo management, they have to finance it themselves. The rights offering of last year showed that nobody in their right mind would give these clowns a dime. That's also why Canargo has been unable to attract a farm-in partner. Nodody wants to do business with these crooks.

If Persistency fired Canargo Management, I suggest the value of the Canargo stock would immediately rise to 40 cents a share. That's what it was before Management started running the company into the ground in preparation for this phony bankruptcy filing. They may feel that only as a 100% owner they would be able to do so, but I suspect it would be easy to call a special meeting and most stockholders would approve replacing management

New, decent Management could start getting oil out of the ground. The stock would be worth between $1 and $15 per barrel of reserves in the ground. Allowing for the production sharing agreements Canargo should have about 1 billion net barrels of oil (including gas equivalents) as reserves. Renaissance Capital has suggested that this oil would be worth $5 per barrel. That means the stock as is in the float now would be worth $20 per share.

That would make Persistency's shares (25%) worth $1.3 billion. That's a nice return on an investment of around 15 million. This could easily be within 18 months.

In addition, as a Delaware company Canargo still has a $200 million loss write-down to work off.

[Tutu]

bankrupt pos wow this has been a funny 2 year i have owned this crap good thing it was only a few shares

[Tutu]

yea its been ugly for a few years now

[cunning plan]

Bankrupt.

Finally. Good. Now stockholders can write the Court to replace the clowns who have run this company into the ground.

[backtrax]

....ZZzzzzzzZZzzzzzZZzzzzzzzzz...?

[cunning plan]

The Russians

I have to wonder. Have the Russians been involved with this operation? What would happen if the company was successful and Georgia became not only independent, but wealthy from its oil resources?

I have to wonder about all the bad luck this company has had. It's just one thing after another. If luck is where opportunity meets planning could not bad luck be the same? Since the company has to hire local people could not somebody be working to sabotage the operation?

It seems to satisfy Management, all the company has to do is earn enough to pay bloated executive salaries and have a few crumbs left over for the locals.

If the company goes bankrupt, the PSC's (worth billions) could go to a new company, one that might be better at looking after stockholder value.

Maybe this is Putin's updated version of "The Trust" of Felix Dzerzhinsky's days.

CP

[Tutu]

been holding for 2 years and nothing good still going on been at this level for a while wow

[PENNYPRINCE 1]

Is there a pr guy to call? Is there anyting here is it worth buying?

[gchar19845]

Stock is being delisted from the Oslow Exchange. It looks like a lot of Norwegians dumped this stock. Quite a difference from when it was delisted from the AMEX. This may be a long term opportunity. Their main field is being considered as a site for Georgia's underground gas storage facility.

[modohome]

wow what happened today??

[funtime]

Got my shares about few months ago

[PENNYPRINCE 1]

I see and didnt get any yet, oh well.

[funtime]

It is looking good now.

[Tutu]

i have this stock over a year when will it finally move

[PENNYPRINCE 1]

Did you buy it might finaaly be time to nibble.

[funtime]

Here's a the link sorry been working.

http://finance.aol.com/quotes/canargo-energy-corp/canr/nao

[PENNYPRINCE 1]

Well I just bought a little lets see if they know what they are talking about. Also do you have a link to that?

[funtime]

I'am taking a long shot. Aol money has a strong buy today

[PENNYPRINCE 1]

Is anyone taking a crap shot here?

[Crafty55]

submitted request. if you want this board, i'm leaving as the mod.

[control it]

trading as CANR

[calitrader]

its a no play because its halted. Let me know if you get a feed or news on it until then dead money imo.

[mkinhaw]

CANR pink Mon
MK

[Crafty55]

We get through .046 and its on to .05!

[Crafty55]

Starting to break out again!

[Crafty55]

Well, I am averaged down to current prices. This looks to be consolidating here. With some volume, this is going to run fast!

[Crafty55]

Wow, that sounds fantastic haha.

This is just a chart play then.

[calitrader]

I bailed. Its halted come Monday if you read the news a couple days ago.

I emailed the company about stopping the halt or listing on pinksheets and they had no intelligent response. It sounds like they don't give a crap.

Dear Mr. XXXX,

The company is currently working on how to proceed and will update the market as soon as a conclusion has been reached.

Best regards

Canargo

[Crafty55]

A whole lot of .05 buying going on here.

[Crafty55]

Well, looking at a chart, it seems like accum. is almost done. Seems like we are forming a hammer. Ready to run again.

[Crafty55]

Well, it looks like CNR is back into consolidation mode, like it was a couple months ago.

[Crafty55]

Is anyone trying to flip the .04-.05 trading?

[Crafty55]

This jumping around the bid/ask is really annoying.

[Crafty55]

Yea, I think its consolidating again for another run.

[calitrader]

I am thinking of clearing out everything to .05 again. This is getting old should get through .06 already.

[Crafty55]

Ready for this to run!

[Crafty55]

Oh ok, gotcha

[calitrader]

This stock was naked shorted for months. It looks like mm's straightening thier books out to me.

[Crafty55]

I don't understand the buying at .06 and the selling at .05. It's like the bid and ask don't exist. Anyone know why this happens?

[Crafty55]

$$$$$

[calitrader]

Resistance .10 .20 .40

Those are the majors. If we crack .20 I would say tap .40 then splat.