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Outstanding shares have increased per the S1 just filled. Although your calculations need revision with this new increase, still a collection of $80 million, for example, should propel the share price quite substantially.
Waiting for updates on collection here.
This is how the world works my friend.
What I am telling you is what it is being advised to GDSI.
You are smarter than you think!
No.
You are looking at it throught the lens of a local lawyer.
In the US, I agree that the local court's decision is final but its being appealed. But for the purposes of the Inter-American Convention, o any other country, (or for matters of reciprocity) a final judgment means that a decision has no possibility of being further appealed. Reaching the US Supreme Court is an extremely unlikely escenario so courts have usually interpreted that an appeals court decision suffices. Otherwise, there would be a number of decisions that would be left unenforceable outside the US, since the docket of the US Supreme Court is limited.
With this decision, enforcement abroad is now available as of yesterday.
Kudos for GDSI
Definitively a possibility.
If I was their counsel, I would advise to do it.
They couldn't seize assets because the cout's decision was not final. To enforce outside the US, a decision needs to exhaust local remedies. Local remedies were exhausted with the appeal. This is a matter of international law. Now the decision is enforceable everywhere. There is nothing available to the Bolzans.
I wouldn't worry about their connections. You just go and get another politically connected group and give them a piece to fight the Bolzans.
There are ways... many ways now for GDSI.
Who cares! It's game on baby! This is all they need to go really after the Bolzans.
But to answer your question... I would expect GDSI to start sezing assets while at the same time getting everything they can from the court. There is no impediment to do it at the same time now.
It's even easier for GDSI to sell the decision to someone else if they want to.
Look again!
Squeeezzeeee!!!
So... I expect a PR afterhours or tomorrow morning, which should bring the volume up. Crazy how it still not reflecting a higher SP. These guys from Rontan are toasted, there is very little they can do to offset whats comming (and I am being generous).
Excellent! Here comes collection!
Nothing can stop this!
DMAN will be a prime beneficiary of the evolution from the cannabis sector in the comming months. Expecting this company to do extremely well.
Fireworks have and will continue to go off!
You are right!
Anyhow the point was that it seemed that MMs were preventing this from running higher today.
I tried to buy shares at the bid .08 instead of the ask, which is much lower .0721, and I was given the shares at the lower price.
hahahaha
That is the $200 million dollar question my friend.
Not sure if they are billionaires but they, at least, have the plant. In any case, my theory is that the Bolzan's fit the stereotypical rich strongmen profile in South America. They are used to have their way as they seem to be rich and politically contected. So this whole ordeal might be just a nuance. Why would they sabbotage the whole proceeding by not attending? I think they are banking on stopping collection in Brazil. This might also explain why they are not hiring more qualified counsel.
But yeah... there is still that risk.
I like my version better :)
That is correct. BMW and Sony hire Skadden because they know them and are among the world's elite companies. Rontan might be big but unsophisticated in their dealings as it has been proven. Rontan is hardly a transnational company like BMW or Sony.
My take is that the majority of heavy weights and elite companies with ample litigation experience hire big law. While big, GDSI hasn't quite reach a heavy weight or elite status and might seem like they haven't had any previous litigation experience in the US prior to this case.
In any case, outside of the legal circle and the US, few know the big US law firms. So for many, specially in Brazil, there is no difference between Gottlieb and Skadden Arps. They are just unaware of what they offer. It is just a different planet. You would think that companies look at rankings when looking for representation but the reality is that they don't. That is why is not so easy for law firms to get clients overseas just based on their qualifications.
This is one of the disparities that GDSI is benefiting from. Of course I might be wrong as I am very bullish on this stock.
Not only that. I would also add that the mediation order appears to indicate how the court views the dispute. GDSI's PR mentions that mediation is related just to the "damages portion of the judgment", i.e. not the underlying merits of the case. Basically, this tells me that the court might view that an appeal by Rontan has a small chance of reversing the lower court's decision. This might be true, particularly if mediation was not requested by any of the parties and the judge ordered it suo motu.
Basically, this order might mean that the judge is trying to give Rontan one last chance before bringing the hammer down on them.
In any case, I have increased my holdings of GDSI in the last couple of days.
Usually in this context, finality means that judgments are usually not recognizable until no ordinary appeals can be launched against them. This is somewhat spelled out in the Inter-American Convention on Extraterritorial Validity of Foreign Judgments to which Brazil is a party to. I've seen these kind of arguments before when countries seek a stay of enforcement of an international decision/award against them while a review of that decision/award is ongoing. Not entirely sure this could work in Brazil but seems like a reasonable argument that the Bolzans could make. Nevertheless, I can see how this could not work in the US.
I'm with you on the timing although I am not very familiar with the appeal's process in itself. In any case, I feel quite confident about the stock price moving forward.
Btw kuddos on your posts. It is quite rare to find fair and well-thought comments in some of these boards. Keep'em comming.
I had in mind that the Bolzans could argue something along the lines that since the appeal is still available and ongoing in the US and could potentially remand or reverse some of the prior issues decided by the US District Court, the matter is still to be decided and has not yet reached the status of res judicata. Enforceability in Brazilian courts call for the judgment to be "final", which could mean "no longer appealable" (the issue of finality). Until there is a decision on the appeal that closes the door on any potential reversion, Rontan could argue that GDSI cannot seek the decision of the US District Court to be enforceable in Brazil.
Sure, they can hire a real appellate lawyer, but I agree with you that the odds are stacked against the Bolzans. Narratives matter and GDSI has a strong narrative. GDSI has been strategic throughout the process, the Bolzans have not.
Thanks equinvestor.
I'm no Brazilian law expert but there is definitely a chance that the Bolzans can raise all sort of res judicata and finality issues while the decision is being appealed in the US (Article 961.1. of the Brazilian Code of Civil Procedure: "É passível de homologação a decisão judicial definitiva..."). I know I would if I was representing them.
I understand that collection efforts can proceed, for instance, in England. Generally, other common law countries follow similar rules. But it seems tougher in civil law jurisdictions like Brazil.
The path of least resistance would be to wait for the US process to follow its course. Then I would expect GDSI bringing the hammer down on the Bolzans simultaneously in Brazil and other "friendlier" jurisdictions. Of course, all of this might not be even necessary if there are assets in the US.
Anyway, the Bolzans have constantly proven to lack sophistication in their dealings... and for that... they will pay.
GDSI will have its Libertad moment... make no mistake
https://www.businessinsider.com/hedge-fund-elliott-capital-management-seizes-ara-libertad-ship-owned-by-argentina-2012-10
Everything is predicated on where the assets are ofc. Leaving aside the US, Brazil is definitively the default plan. In fact, it would be unreasonable if GDSI would not even mention making an effort to collect in Brazil, particularly since Rontan/Bolzans are in Brazil or plainly to just throw the Bolzans off the scent. Let say, it is the cheapest option.
However, if they found assets in "friendlier jurisdictions", e.g., Europe or other Latam countries, it is highly likely they will pursue recovering assets there first. This, in fact, could be Parabellum's greatest addition aside from the money. It is, however, unlikely that shareholders will know before assets have been recovered or almost to the point of being recovered. This is where things could get interesting and could be a nice surprise.
Anyway, chances of collecting in Brazil are not the highest but they are still good. Remember this will be a recognition process and the judge's discretion is considerably restricted. Even more, the Florida judge does not seem to give the Bolzans any reason to argue that due process was breached, and I do not see any public order reasons for not enforcing. I would have doubts if the Brazilian judge has ample leeway or if the decision is against the government or its agencies, but this is not the case. In fact, I think the quality of counsel is even a greater factor in Brazil than it is in the US to counter any potential risk of corruption. I am sure Parabellum and GDSI are aware of this.
What we know for sure is that this will be a headache for the Bolzans and GDSI will be there to collect the pieces.
Good... you are catching up.
Welcome to the conversation.
This is all Parabellum and BSF. Don't worry you'll thank them later.
Oh that is for sure eqinvestor.
Funders and counsels have a symbiotic relationship. I worked with a few of them and one of the many criteria they analyze before deciding to get involved in a case is the quality of counsel.
Not sure which one came first in this case. But Parabellum wouldn't be here if GDSI didn't have elite or close to elite counsel. There is no doubt. If Parabellum was contacted first, then they would have probably had a say in who GDSI was to hire.
There are always risks but this setup is incredibly favorable to GDSI. It is sad that Rontan/Bolzans continue to dig their own graves.
I disagree with Josh's conclusion but he does have a good point.
No doubt, Parabellum plays now a significant role and it is a force to be reckoned with. I mean, the guys are financing this whole thing and have the niche legal expertise and probably the contacts. All of this means that they review every single legal brief submitted to the courts (not that GDSI's lawyers need it) and have a voice in the strategy towards collection. They are probably the drivers of the legal strategy.
This does not mean that they can side step GDSI. Whether or not to agree to a specific settlement is usually a busines decision. GDSI will definively consult with BSF and Parabellum if there is an offer. However, and this is very important, all business decisions still rest in the hands of GDSI (whether we like it or not).
Needless to say, if there is an offer with a significant haircut, it is not in GDSI and Parabellum's interest to take it. These guys will stay as much as they can to maximize profits and will continue to kick the dog when its down until they are satisfied.
Funders are in the business of screwing the ones who they fight against, not usually the ones that they are supporting.
You would be surprised, my friend.
Expect Parabellum, like any other funder, to be unscrupulously vicious. They have been given the green light. They will take it. It wont be nice. This is now a contortionist excercise.
Not disagreeing with you here.
The possibility of them having a judge in their pockets is real. But I wouldn't underestimate the brazilian process all together. For sure it is not the US but it is also not Bolivia or Venezuela.
I would venture to say that at this point Parabellum is running the show, which means that they might be looking to bypass Brazil as the destination for enforcement. I would certainly look at Portugal, England, Colombia, Argentina in parallel to see if they have assets there. Parabellum sure knows how to be creative.
In any case, I would be very surprised if Rontan/Bolzans don't have assets in the US. Highly unlikely but who knows...
For sure, it will be fun for those who stick around.
GDSI probability of collecting is high. Of course, there is a risk but this is somehow diminished by the fact that they can directly collect from the Bolzan's personal assets. You just have to understand how the sausuage is made.
This might very well be a shitco or a scam. It doesn't matter. This scam has a legal mandate for millions of dollars.
People need to understand that this is now mostly the whole legal edifice against Rontan/Bolzans. Sadly for them, they brought this to themselves.
"There is nothing legally that stops GDSI from collecting the $192 million from the individuals. Nothing Josh."
Correct my friend.
Judgment is brutal for the Bolzans and Rontan. I have little doubt that GDSI will get what the court gave them. Just look at what Paul Singer did with Argentina... a sovereign State.
I am surprised legal fees were relatively small, good for the lawyers. Court will grant all.
Right TKane, finding assets is truly a contortionist effort. Not too concerned about it.
That is correct sir.
Spot on.
I find it highly unlikely that Rontan would not have assets in the US. Highly unlikely.
Sure, if you want to enforce it in Brazil.
Lets put it this way. If Rontan has assets in the US, then it is imminent that GDSI will have them in no time. No need to do anything in Brazil. If they don't find anything then they can go to Brazil and follow the local laws.
That is why you hire a forensic firm.
In any case, with this judgment GDSI can now sell the award to someone else. GDSI should not have any problems finding a right suitor, if they wish to.
I'm sorry Phoenix but you are wrong. I do this for a living. A US judgment is enforceable in the US. Only if they want to go after assets in Brazil they should follow brazilian law. I'm not sure why you keep saying otherwise.
This is an exceptional milestone for GDSI. Exceptional. The award is worth multiples of current share price.
It could but only if GDSI decides to go after Rontan directly in Brazil.
If they find assets in the US, they will get them shortly.
In any case, if they decide to go to Brazil, I see no reason why recognition would be denied.
I like this part; not letting anyone off the hook:
"To the extent that the monetary judgement award is not satisfied by payment or set off of the purchase price, plaintiff shall be entitled to enforce and recover such unsatisfied portion of the monetary judgement award against any or all of the defendants, who will be jointly and severally liable for any unsatisfied portions."
Thas is correct. Like any other fund, it seems likely that they might be running the show by now.
This judgment means something somewhere whether it is in the US, Brazil or anywhere else. They will make sure to enforce it anywhere.
You are forgetting the Parabellum (or whatever other fund comes along) factor my friend.
GDSI has a fantastic asset now and can very well leverage it to their advantage. I've seen the same picture before.
We are stearing at GDSI transformation.